- On Wednesday, blockchain data analytics account Lookonchain disclosed suspicious activities surrounding the Solana-based meme coin, Doraemon.
- This purported scam, known as a rug pull, led to a catastrophic drop in the price of DORAE, the coin’s native token, by more than 99% in just a few hours.
- Lookonchain’s analysis suggests that a specific wallet involved in the incident might belong to the project’s developer.
Discover the unraveling of the DORAE coin scandal, a suspected rug pull that led to a massive 99% price drop, and delve into the broader issue of rug pulls in the cryptocurrency market.
DORAE Token Price Plummets Amid Rug Pull Concerns
Lookonchain announced via a post on X that a wallet identified as 3TQYNN…yFAccW liquidated approximately 2.5 million DORAE tokens, converting them into 10,538 SOL, valued at roughly $1.45 million. This massive sell-off triggered an immediate and drastic decline in DORAE’s price.
The on-chain data indicated that the wallet “3TQYNN…yFAccW” might be linked to the project’s developer, as it initially received around 304 SOL from a Kucoin-based wallet before buying the tokens. Subsequently, the wallet sold all DORAE tokens, realizing a 34-fold return within six hours.
Tracing Back the Transactions
Further analysis traced back the 304 SOL to a deployer wallet named CKEfb2…HQWuUR, suggesting a direct connection between the dump and the project’s foundation. This evidence has led industry experts, including Lookonchain, to believe that the malicious activity was likely orchestrated by someone close to or within the development team of DORAE.
A crypto community member on X speculated that the same developer might be behind multiple projects engaging in similar fraudulent activities. The sentiment echoed that DORAE might have been another venture designed to lure in investors before executing a rug pull.
The Broader Issue of Rug Pulls in the Crypto Space
Rug pulls have become increasingly common, particularly with the rise of new meme coins. The Solana ecosystem, in particular, has seen a surge in these scams. For instance, the meme coin Catwifhat (CIF) has experienced multiple rug pulls since its inception.
On-chain investigator ZachXBT recently highlighted that approximately 12 Solana-based meme coins, which collectively raised about $26 million, have gone dormant. ZachXBT also identified several founders and social media accounts associated with these nefarious projects, warning investors to steer clear of them.
The lure of potentially high returns on low market cap and newly launched coins often blinds investors to the high risks of rug pulls, making them easy targets for bad actors in the crypto space.
Conclusion
The DORAE incident underlines the persistent and evolving threat of rug pulls in the cryptocurrency market. Investors are urged to exercise due diligence and remain skeptical of projects offering rapid returns. The case of DORAE serves as a stark reminder of the vulnerabilities within the DeFi ecosystem and the importance of robust on-chain analysis to protect one’s investment.
