Skip to main content

🚀 MSPC Token Security Investigation Report

🏢 OTCM Protocol, Inc.
📅 November 2025
🔒 Classification: Internal Technical Report

📋 1. Executive Summary

The launch of MSPC (Security Meme Token) on the OTCM Protocol revealed critical infrastructure and community communication challenges that require immediate remediation before future token launches. This report documents the issues encountered, root cause analysis, and actionable recommendations.

🔑 Key Findings

#FindingSeverity1️⃣RPC Infrastructure Bottleneck: The Helius RPC tier (200 req/sec, 50 sendTx/sec) was insufficient to handle the high volume of bot-driven and legitimate transactions during launch🔴 Critical2️⃣20-Minute Cooldown Perception Issue: The circuit breaker cooldown mechanism was not well-received by the crypto community, particularly when bots bypassed the rate limits🟠 High3️⃣Copycat Token Proliferation: At least 13 fraudulent MSPC tokens were launched on competing platforms, creating significant community confusion🔴 Critical

⚡ 2. Infrastructure Analysis: RPC Capacity

2.1 📊 Current Configuration

The OTCM Protocol currently utilizes Helius as the RPC connector to the Solana ecosystem. At launch, the following tier was active:

MetricCurrent TierRecommended TierChange🔄 Requests/Second200500+150%📤 sendTransaction/Second50100+100%📈 Capacity IncreaseBaseline+150% / +100%✅ Required

2.2 🔍 Root Cause Analysis

During the MSPC launch, bot activity and legitimate transaction volume exceeded the 50 sendTransaction/second limit. This resulted in:

IssueImpact⚠️ Transaction 51+ processed without 20-minute cooldown restrictionSecurity bypass🤖 Bots gaining unfair advantage by circumventing protection mechanismsUser disadvantage❌ Legitimate users experiencing failed transactions and frustrationPoor UX😤 Perception that security mechanisms were not functioning as advertisedTrust erosion

2.3 💡 Infrastructure Recommendations

TimelineActionPriority⚡ ImmediateUpgrade Helius tier to 500 req/sec and 100 sendTx/sec before next launch🔴 Critical📅 Short-termImplement transaction queuing system to handle overflow gracefully🟠 High📆 Medium-termDeploy redundant RPC endpoints with automatic failover🟡 Medium🔮 Long-termConsider dedicated validator nodes for mission-critical launches🟢 Strategic

⏱️ 3. Cooldown Mechanism: Community Reception

3.1 📝 Issue Description

The 20-minute cooldown mechanism, designed as a circuit breaker to prevent panic selling and protect investors, was not received positively by the crypto community. The negative perception was compounded by the RPC bottleneck issue.

3.2 🧩 Contributing Factors

FactorDescription⚖️ Unequal ApplicationBots sliding through the 50 sendTx/sec limit could buy and sell instantly, while legitimate users were subject to the cooldown📢 Communication GapThe purpose and benefits of the cooldown were not adequately communicated pre-launch🎭 Crypto Culture MismatchThe meme coin community values speed and quick exits; a 20-minute restriction conflicts with trading expectations🔓 Trust ErosionWhen bots appeared to bypass restrictions, it created distrust in the protection mechanisms

3.3 ✅ Cooldown Recommendations

RecommendationRationale⏰ Reduce Initial CooldownConsider a 5-minute cooldown for launch phase, scaling to 20 minutes only when circuit breakers trigger🤖 Bot Mitigation FirstEnsure RPC capacity can enforce cooldown universally before announcing it as a feature📚 Pre-Launch EducationCreate educational content explaining why cooldowns protect investors from pump-and-dump schemes📊 Transparent MonitoringDisplay real-time cooldown status and enforcement statistics on the platform dashboard

🎭 4. Copycat Token Analysis

4.1 🚨 Documented Fraudulent Tokens

The announcement of the MSPC launch resulted in the creation of at least 13 copycat tokens on other platforms, designed to deceive community members:

3AWM8...9Lns

4.2 💥 Impact Assessment

The proliferation of copycat tokens created significant confusion and potential financial harm:

ImpactConsequence💸 Financial LossCommunity members purchased fraudulent tokens believing they were the official MSPC SMT📉 Diluted LaunchThe official launch was diluted by competing (fraudulent) attention🛡️ Reputation DamageOTCM Protocol's reputation for security was called into question😰 Trust ErosionCommunity trust was eroded by the perception that scams were easy to execute

4.3 🛡️ Anti-Copycat Recommendations

StrategyImplementation🥷 Stealth Launch StrategyConsider launching without advance announcement; reveal official contract address only after trading begins✅ Official Verification SystemDevelop a verification page on OTCM.fun where users can verify official contract addresses📋 Pre-Register Token MetadataWork with Solana token registries (Jupiter, Birdeye) to pre-verify official tokens🚨 Community AlertsDeploy automated alerts on Discord/Telegram warning about copycat tokens in real-time⚖️ Legal DeterrenceIssue public cease-and-desist notices to known copycat deployers; document for SEC filings

🏗️ 5. THE SOLUTION: OTCM Layer 2 Infrastructure

5.1 🎯 Why OTCM Needs Its Own Layer 2 on Solana

The MSPC launch issues—combined with the GRLF unauthorized liquidity pool incident—demonstrate a fundamental truth: OTCM Protocol cannot rely on existing DEX infrastructure to fulfill its security promises.

💡 Core Insight: Every issue encountered stems from a single root cause: OTCM tokens operating on infrastructure that doesn't understand or enforce OTCM security controls.

5.2 🔴 The Fundamental Problem

ComponentCurrent StateProblem🏊 Liquidity PoolsRaydium, Orca, JupiterBuilt on legacy SPL token codebases—cannot process Token-2022 Transfer Hooks🤖 AMMThird-party DEXsNo integration with OTCM circuit breakers or wallet limits📈 Bonding CurveExternal platformsPrice discovery occurs outside OTCM control🛡️ Security ControlsToken-level onlyBypassed the moment tokens enter external pools

5.3 ⚠️ What Happens on External DEXs

When OTCM tokens trade on Raydium, Orca, or Jupiter:

OTCM Security FeatureStatus on External DEXResult🚫 4.99% Wallet Limit❌ NOT ENFORCEDWhales accumulate unlimited tokens⏸️ Circuit Breakers❌ NOT TRIGGERED30% sell threshold ignored🔒 Vesting Schedules❌ NOT RESPECTEDLocked tokens become tradeable🐋 Anti-Whale Protections❌ BYPASSEDBots front-run community⏱️ Cooldown Mechanisms❌ CIRCUMVENTEDBots trade instantly

Why? Because Raydium's AMM code never calls the Transfer Hook. The security logic exists in the token, but the DEX doesn't invoke it.

5.4 ✅ The OTCM Layer 2 Solution

OTCM Protocol must build its own Layer 2 infrastructure with:

ComponentRequirementBenefit🏊 Native Token-2022 AMMEvery swap triggers Transfer Hook validationSecurity controls enforced on-chain📊 Integrated Bonding CurvePrice discovery within OTCM ecosystemNo external manipulation💧 Permanent Liquidity LocksLP tokens burned at creationRugpulls mathematically impossible🤖 Anti-Bot MechanismsTransaction ordering protection, commit-reveal schemesFair launch for community📋 Compliance IntegrationReal-time KYC/AML, regulatory reportingSEC-ready infrastructure🔐 Wallet Limit Enforcement4.99% maximum maintained per transactionWhale accumulation prevented

5.5 🎭 How Layer 2 Eliminates Copycats

The copycat problem exists because anyone can create a token named "MSPC" on any platform. OTCM's Layer 2 solves this:

Copycat VectorCurrent VulnerabilityOTCM Layer 2 Solution🏷️ Name SquattingAnyone can mint "MSPC" on pump.funOnly verified issuers can launch on OTCM L2🔗 Fake PoolsThird parties create unauthorized LPsLP creation restricted to protocol🎣 PhishingUsers can't verify legitimacyOn-chain issuer verification (KYC/AML)📢 Announcement SnipingScammers front-run official launchesStealth launch + instant verification🏦 Custody ConfusionNo way to verify equity backingEmpire Stock Transfer integration

5.6 📊 Comparison: External DEX vs. OTCM Layer 2

FeatureRaydium/Orca/JupiterOTCM Layer 2Token-2022 Support❌ Partial/None✅ NativeTransfer Hook Enforcement❌ No✅ Yes4.99% Wallet Limits❌ Bypassed✅ EnforcedCircuit Breakers❌ Ignored✅ ActivePermanent Liquidity Lock❌ Optional✅ MandatoryIssuer Verification❌ None✅ Full KYC/AMLEquity Backing Proof❌ Impossible✅ On-chain OracleCopycat Prevention❌ None✅ Protocol-levelSEC Compliance❌ No✅ Built-inRugpull Risk🔴 High✅ Mathematically Impossible

5.7 🎯 Key Takeaway

🚀 OTCM cannot fulfill its core mission—"making rugpulls mathematically impossible"—while relying on external DEX infrastructure.

The Layer 2 is not optional. It is essential to:

  1. ✅ Enforce all 42 security controls on every transaction
  2. ✅ Prevent unauthorized liquidity pool creation
  3. ✅ Eliminate copycat token confusion
  4. ✅ Maintain SEC compliance for Security Meme Tokens
  5. ✅ Protect community from bots and front-runners
  6. ✅ Deliver on the Howey Shield commodity classification

✅ 6. Priority Action Items for Next Launch

6.1 📋 Pre-Launch Checklist

PriorityAction ItemStatus🔴 CRITICALUpgrade Helius RPC to 500 req/sec, 100 sendTx/sec tier⏳ Pending🔴 CRITICALImplement stealth launch or instant address reveal strategy⏳ Pending🔴 CRITICALBegin Layer 2 AMM development with native Token-2022 support⏳ Pending🟠 HIGHDevelop official token verification page on OTCM.fun⏳ Pending🟠 HIGHReduce initial cooldown to 5 minutes (dynamic scaling)⏳ Pending🟠 HIGHCreate educational content on cooldown benefits pre-launch⏳ Pending🟡 MEDIUMDeploy Discord/Telegram bots for copycat token alerts⏳ Pending🟡 MEDIUMPre-register with Jupiter/Birdeye for verified token status⏳ Pending

6.2 📢 Communication Strategy

For the next token launch, implement the following communication improvements:

PhaseAction📅 Pre-LaunchPublish detailed documentation explaining security mechanisms, including cooldown logic and circuit breakers🚀 LaunchDeploy contract address reveal simultaneously across all channels (Twitter, Discord, Telegram)📊 Post-LaunchProvide real-time status updates on platform performance and any issues encountered🔄 OngoingMaintain a verified contract address registry on the official OTCM.fun website

🏁 7. Conclusion

The MSPC launch provided valuable operational data that will strengthen future Security Meme Token deployments. The primary issues identified are all addressable:

IssueSolutionTimeline🔧 RPC Capacity LimitationsHelius upgrade to 500/100Immediate⏱️ Cooldown Mechanism PerceptionDynamic scaling + educationShort-term🎭 Copycat Token ProliferationOTCM Layer 2 + stealth launchMedium-term

✅ What Worked

The OTCM Protocol's fundamental security architecture functioned as designed:

  • ✅ 30% circuit breaker triggered correctly
  • ✅ 4.99% wallet limits maintained at token level
  • ✅ Permanently locked liquidity protected from rugpulls
  • ✅ SPL Token-2022 Transfer Hooks validated transactions

🔑 Ultimate Solution

💡 Key Takeaway: With the Helius RPC upgrade to 500/100 capacity, refined cooldown parameters, stealth launch strategy, and most critically—OTCM's own Layer 2 with native Token-2022 AMM and bonding curve—the next SMT deployment will eliminate the copycat problem entirely while ensuring all security controls are enforced on every transaction.

The Layer 2 is not a feature—it's the foundation that makes OTCM's security promises technically enforceable.

Back to top