DORAE, a meme coin based on Solana, fell victim to the rug pull .
Due to this incident, Doraemon holders suffered a loss of almost 100%, amounting to $1.45 million.
Doraemon gets a Doraemon rug for $1.45 million
Blockchain data analytics firm LookOnChain reported that someone associated with a Doraemon distributor dumped 2.5 million Doraemon tokens into 10,538 Solana tokens worth $1.45 million. The perpetrator received 304 SOL from KuCoin and other wallets and used these funds to purchase 2.5 million DORAE tokens.
We then disposed of all DORAE tokens to SOL within 6 hours. Interestingly, this distributor wallet subsequently sent 225.7 million coins to other wallets. This series of events caused Doraemon's price to drop by 99%, with signs pointing the finger at the project's developers.
“Looking at the on-chain data, it is clear that the wallet that dumped 2.5 million Dorae is associated with the distributor of Dorae,” LookOnChain explained .
Doraemon's fully diluted value (FDV) and market capitalization following the lug pull are now just $140, according to Dexcraner data. This crash shows the volatility and risk of emerging cryptocurrency projects.
Read more: Cryptocurrency Project Security: A Guide to Early Threat Detection
Rug pulls are becoming a significant issue in the cryptocurrency market, especially in decentralized finance (DeFi). The 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, which they exploit to siphon off funds.
In the aftermath, investors often feel betrayed and helpless as they watch their investments disappear. These deceptive practices undermine trust in the cryptocurrency market and demonstrate the importance of thorough due diligence.
Doraemon is similar to previous incidents where celebrities have faced backlash for promoting questionable projects. Recently, singer-songwriter Jason Derulo faced criticism after being accused of fraud after endorsing a meme coin that plummeted 72% in a matter of minutes.
