Solana Meme Coin Developer Accused

Doraemon (DORAE), a meme coin based on Solana, has fallen victim to a rug pull.

This incident has resulted in nearly 100% losses for DORAE holders, amounting to $1.45 million.

Doraemon Rugged For $1.45 Million

LookOnChain, a blockchain data analysis firm, reported that someone related to the Doraemon deployer dumped 2.5 million DORAE tokens for 10,538 Solana tokens, valued at $1.45 million. The perpetrator received 304 SOL from KuCoin and another wallet and used these funds to buy 2.5 million DORAE tokens.

This individual then dumped all the DORAE tokens for SOL within six hours. Interestingly, the deployer wallet later sent 215.7 million DORAE to another wallet. This chain of events led to a 99% price drop in Doraemon, with indications pointing to the project’s developer.

“From the on-chain data, it is clear that the wallet dumping 2.5M DORAE is related to the deployer of DORAE,” LookOnChain wrote.

Following the rug pull, the fully diluted valuation (FDV) and market capitalization of Doraemon now stand at only $140, according to DEXScreener data. This collapse highlights the volatility and risks associated with emerging cryptocurrency projects.

Read more: Crypto Project Security: A Guide to Early Threat Detection

Rug pulls have become a significant concern within the cryptocurrency market, especially in decentralized finance (DeFi). This scam involves developers abruptly withdrawing liquidity from a project, leaving investors with substantial losses. Such scams occur in projects where developers control liquidity pools or smart contracts, exploiting their access to drain funds.

The aftermath often leaves investors feeling betrayed and helpless, watching their investments vanish. This deceptive practice erodes trust in the crypto market and highlights the importance of thorough due diligence.

Doraemon mirrors previous events where notable figures faced backlash for promoting questionable projects. Recently, singer-songwriter Jason Derulo faced criticism for endorsing a meme coin that plummeted by 72% within minutes, raising scam allegations.