Doraemon (DORAE), a meme coin inspired by Solana, has fallen victim to a rug pull.
This incident resulted in a loss of nearly 100% for DORAE holders, amounting to $1.45 million.
Doraemon Rugged for $1.45 million
LookOnChain, a blockchain data analytics firm, reported that an individual connected to the Doraemon distributor dumped 2.5 million DORAE tokens in exchange for 10,538 Solana tokens, worth $1.45 million. The perpetrator received 304 SOL from KuCoin and another wallet and used the funds to purchase 2.5 million DORAE tokens.
This person then unloaded all of SOL’s DORAE tokens within six hours. Interestingly, the distributor’s wallet later sent 215.7 million DORAE to another wallet. This series of events led to a 99% drop in Doraemon’s price, with indications pointing to the developer of the project.
“From the on-chain data, it is clear that the wallet disposing of 2.5 million DORAE is linked to the DORAE post,” LookOnChain wrote.
After pulling the rug, Doraemon’s fully diluted valuation (FDV) and market cap are now just $140, according to DEXScreener data. This collapse highlights the volatility and risks associated with emerging cryptocurrency projects.
Read more: Cryptographic Project Security: A Guide to Early Threat Detection
Rug-pulls have become a major concern in the cryptocurrency market, especially in decentralized finance (DeFi). This scam involves developers suddenly withdrawing liquidity from a project, leaving investors with significant losses. These scams occur in projects where developers control liquidity pools or smart contracts, taking advantage of their access to drain funds.
The consequences often leave investors feeling betrayed and helpless, and watching their investments disappear. This deceptive practice erodes trust in the cryptocurrency market and highlights the importance of thorough due diligence.
Doraemon reflects past events where prominent figures have faced backlash for promoting questionable projects. Recently, singer-songwriter Jason Derulo faced criticism for endorsing a meme coin that dropped 72% in a matter of minutes, sparking fraud allegations.
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