A recent rug pull involving the Solana-based meme coin Doraemon has caused a massive collapse in the price of the native token DORAE by over 99%. The blockchain data analytics account Lookonchain reported that a wallet dumped approximately 2.5 million DORAE for 10,538 SOL, valued at $1.45 million. On-chain data suggests that the wallet is likely owned by the project’s developer, as it received an initial 304 SOL from a Kucoin-based wallet before purchasing the DORAE tokens.
The wallet later sold the entire DORAE stash for 10,538 SOL, making substantial gains in a short period. The on-chain analysis further reveals that the wallet responsible for the dumping is closely linked to the deployer of DORAE tokens, causing the price of the token to plummet by 99%. Some in the community speculated that the developer behind Doraemon may have a history of launching tokens with rapid price increases followed by rug pulls, creating an illusion of generating significant wealth.
The rise and fall of Doraemon have highlighted the ongoing issue of rug pulls in the crypto space. Since the start of the Solana meme coin season earlier this year, such incidents have become common. Other Solana-based meme coins like Catwifhat (CIF) have also experienced multiple rug pulls. In April, on-chain analyst ZachXBT noted that approximately 12 Solana-based crypto meme coins, which raised a total of $26 million, had become defunct.
Investors in the crypto space often seek out new and low market cap coins in pursuit of high returns, but these investments come with a high risk of being rug pulled. The rug pull problem underscores the importance of conducting thorough research and due diligence before investing in any cryptocurrency project. It is crucial for investors to carefully assess the credibility of the developers behind a project and consider any red flags that may indicate a potential rug pull.
The Doraemon rug pull serves as a cautionary tale for investors in the volatile world of cryptocurrencies. The community’s initial excitement about DORAE quickly turned to disappointment as the price collapsed by 99% following the dumping of tokens by the developer. This incident highlights the need for greater transparency and accountability in the crypto space to protect investors from fraudulent projects and rug pulls.
In conclusion, the Doraemon rug pull has once again brought to light the risks associated with investing in meme coins and low market cap cryptocurrencies. It is essential for investors to exercise caution, conduct thorough research, and be vigilant for any warning signs that may indicate a potential rug pull. By staying informed and making informed decisions, investors can mitigate the risks and protect themselves from falling victim to fraudulent schemes in the cryptocurrency market.
