Solana Ecosystem Shaken as MOONPIG Meme Coin Crashes 30% Amid Rug Pull Fears

The Solana-based meme coin MOONPIG has plunged 30% overnight, sparking rug pull suspicions. Key details include a meteoric 1,500% rally prior to the crash and whale activity linked to Hyperliquid’s James Wynn. Below is a comprehensive analysis of the event and its implications for the solana ecosystem.

MOONPIG Meme Coin Plummets 30% Amid Rug Pull Suspicions

MOONPIG, once a high-flying meme coin, has crashed 30% overnight, triggering allegations of a rug pull. Attention centers on James Wynn, a major whale on Hyperliquid, as traders scrutinize sudden sell-offs.

The coin’s trajectory was meteoric—surging 1,500% in 21 days from $0.003 in early May to $0.135 by May 24, 2025. Smart money capitalized on the frenzy: a TRUMP-affiliated whale turned $7,619 into $1.4 million, while another trader profited $1.4 million from a $2,000 SOL investment in 17 days.

Such parabolic gains now contrast sharply with the token’s collapse, leaving retail investors questioning the sustainability of meme coin mania.

Pump.fun Leads Solana’s Revenue Surge as Ecosystem Activity Expands

Solana’s decentralized application ecosystem is witnessing a robust recovery, with Pump.fun reclaiming its position as the top fee generator. The platform’s resurgence highlights Solana’s dominance, accounting for 68% of all blockchain application revenues—a figure that has steadily climbed since March lows.

Token-based activities, DEX trading, and routing continue to drive this growth. Meteora and Jupiter join Pump.fun as this week’s top performers, supported by Raydium, Phantom wallet, and BonkBot. While still below January’s peak, the two-month upward trajectory signals renewed vitality in Solana’s economy.

SBF Granted Early Release as FTX Fraud Sentence Reduced

Sam Bankman-Fried, the disgraced founder of collapsed crypto exchange FTX, will serve four fewer years in prison than originally sentenced. The Federal Bureau of Prisons confirmed his new release date as December 14, 2044.

The sentencing reduction follows Bankman-Fried’s transfer from the notoriously harsh Metropolitan Detention Center. His conviction stemmed from a sprawling $11 billion fraud scheme involving customer fund misappropriation through sister firm Alameda Research.

Prosecutors successfully argued that FTX executives funneled client assets to finance speculative trades, political donations, and extravagant personal spending. The case marked one of the largest financial frauds in U.S. history, with Ripple effects across the crypto industry.

Solana Shows Strength with $9.45B DeFi Surge and Exchange Outflows

Solana’s ecosystem is demonstrating robust growth, with its DeFi total value locked (TVL) nearing $10 billion. On-chain metrics reveal steady derivatives activity and increasing holder conviction, as evidenced by significant exchange outflows.

Over 2.2 million SOL exited exchanges in May, dropping balances from 33 million to 30.8 million SOL. This sharp decline signals an accumulation phase, with investors showing heightened confidence in the asset.

The native token SOL continues to hover NEAR multi-month highs, supported by strong spot and derivatives market activity. Solana’s DeFi traction and stable futures market performance further underscore its resilience in the current market cycle.

Solana Ecosystem Upgrade with Attestation Service Boosts SOL Price

Solana (SOL) gained 3% in the past 24 hours, outperforming other top cryptocurrencies following the launch of the Solana Attestation Service (SAS). Developed with the Solana Identity Group, SAS establishes a permissionless protocol for identity verification across the ecosystem.

The new tool enables secure credential creation for KYC and KYB compliance in Solana-based applications. This positions Solana’s DeFi infrastructure for broader institutional adoption by addressing regulatory requirements.

Market reaction suggests investors view SAS as a significant step toward mainstream blockchain adoption. SOL’s price movement contrasts with flat performance from other major assets during the same period.

Sam Bankman-Fried’s Prison Term Reduced; Transferred Out of NYC Facility

Disgraced FTX founder Sam Bankman-Fried is now projected for release in December 2044—four years earlier than his original 25-year sentence. The Federal Bureau of Prisons quietly adjusted the timeline without public explanation. Bankman-Fried remains liable for an $11 billion fine tied to his fraud conviction.

The former crypto mogul was recently transferred from Brooklyn’s Metropolitan Detention Center to a federal facility in Oklahoma City. His brief stint in solitary confinement prior to the move hints at ongoing disciplinary challenges. The transfer underscores the Bureau of Prisons’ opaque inmate management protocols.