The End of Memecoin Rugs? FluxBeam, RugCheck in Talks with Exchanges Over Scam Wallet Interception

Presenting at Breakpoint 2024, FluxBeam and RugCheck founder Scott Hague unveiled a litany of new product updates to the comprehensive DeFi platform. 

Fluxbeam rose to prominence as the first decentralized exchange to support Solana token extensions, a feature now implemented across the ecosystem.

In a SolanaFloor exclusive, Hague shed more light on some new features and promising developments in scam prevention and interception on the Solana network.

Diving Deeper into FluxBeam Infinity

FluxBeam Infinity introduces a multitude of competitive new features to the decentralized exchange platform. Taking the stage at Breakpoint 2024, Hague highlighted the key tools that promise to improve the terminal’s user experience, including improved speed, unified data aggregation, and advanced limit orders.

In addition to these features, FluxBeam Infinity will also implement complex automated trading tools. Users will be able to design customizable trading algorithms, drawing from both onchain and offchain events.

“Obviously, the automation is our big key thing this year, whereby we really want to allow users to come in and trade on any news, whether that's on-chain, off-chain, even the weather if you want to, but be able to take that data, make actionable insight from it and then trade automatically on-chain. Similar to algo trading in TradFi.”

As part of the new data aggregation, Fluxbeam is also implementing sentiment analysis. This essential tool helps traders accurately gauge market sentiment surrounding certain assets by tracking discussion through various forms of media.

With over a decade of experience in AI, Hague is well-equipped to ensure that Fluxbeam’s sentiment analysis won’t fall victim to artificial commentary. When asked what countermeasures Fluxbeam’s sentiment has taken to combat false commentary, Hague asserted:

“We run essentially a scoring system similar to RugCheck on every single account and say, okay, well, this is a high likelihood of being a bot or this is a high likelihood of being an influencer. Influencers obviously can't, they can to an extent fake their following base, but they can't really fake their engagement over a long period of time.”

While suggesting that analyzing social media commentary is a relatively simple affair, Hague concedes that tracking sentiment from news sites is more nuanced. Fluxbeam combats this by only pulling sentiment data from reputable sources, a strategy Hague admits “comes with its own bias”.

The updated trading platform also offers ‘Smart Money’ analytics, tracking onchain wallet performance, cluster and historical data, and insider-esque behavior to give traders additional weapons in their trading arsenal.

New $FLUXB Deflationary Mechanics

The rollout of Fluxbeam Infinity is expected to coincide with new token mechanics that aim to provide value to $FLUXB, the platform’s native asset.

Fluxbeam Infinity will implement a new buyback-and-burn algorithm. The mechanism introduces a fee split to Fluxbeam Infinity’s powerful new features, with 50% of accrued platform fees being used to buy $FLUXB off the market and permanently remove tokens from circulation.

“With our new products of both the advanced limit orders and automation, all of that is actually going to have a fee split on it where we start to burn down $FLUXB. Every time there's a trade or something like that, we take a small fee, split 50-50, and then that $FLUXB will slowly start to burn down just so we can get the supply down and really start to reward our long-term holders.”

In addition to the new burn feature, Hague confirmed that Fluxbeam intends to launch a Season 2 incentives program to reward platform users.

Rugcheck Engages Exchanges to Intercept Onchain Scammers

Alongside FluxBeam, Hague has also spearheaded the development and growth of RugCheck, one of Solana’s most popular security tools. Over the past year, Solana traders have generated over 100M token reports via RugCheck, trusting the protocol’s analysis to gauge the safety of onchain assets.

Over the course of the last year, RugCheck has built up a significant database of scammer wallets and their associated CEX accounts and off-ramping pathways. Scammers often use CEX accounts to launder and obfuscate funds.

As one of the most trusted security tools in the Solana Ecosystem, RugCheck has begun liaising with centralized exchanges in a bid to intercept scammers before they can take compromised assets offchain.

While Hague admits that “it’s still early days”, the RugCheck founder was optimistic about the ongoing discussions. Conceding that it may take some time to assure centralized exchanges that “the data is legit”, Hague opined “We've started down that route. We all know regulation is coming, so the further we can get ahead of that and start getting ahead of it, the better.”

While Hague wouldn’t reveal which centralized exchanges were taking part in discussion, Hague conceded that RugCheck needs “to gain the trust of the CEXes to say, okay, the data's legit. It's going to be another six months, I'd say, until we can really get the full trustworthiness from that.”

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