A new meme coin on the Solana blockchain, called Doraemon (DORAE), has seen its price drop dramatically. The value of the DORAE coin fell by 99%, and people are saying it might be because of a scam known as a rug pull.

What Happened to DORAE?

On June 26, 2024, the price of DORAE dropped almost to zero in just a few minutes. This happened after some unusual activities were noticed with the wallets connected to the person who created the coin.

A group called Lookonchain, which watches blockchain activities, found that the developer moved a lot of DORAE tokens to an exchange and sold them for Solana (SOL). This big sale caused the DORAE coin’s price to crash.

Strange Actions by the Developer

The person who made DORAE moved 2.5 million DORAE tokens to an exchange and exchanged them for 10,538 SOL, worth about $1.45 million. This huge sale made the price of DORAE drop by more than 99% very quickly.

Lookonchain shared this information, saying it looks like the developer did this on purpose to make a lot of money and leave everyone else with worthless coins.

On-Chain Data Insights Of the Wallet Owner

The data shows that the wallet that sold the DORAE tokens received 304 SOL, worth over $41,000, from a crypto exchange called Kucoin.

The owner of this wallet bought 2.5 million DORAE tokens and then sold them quickly for 10,538 SOL, making a big profit in less than six hours. This quick sale raised suspicions of a scam.

This Incident effect on Solana's Meme Coins

Solana (SOL) has seen a lot of new meme coins lately. According to CoinMarketCap, the total value of all meme coins is around $48 billion, with $4.6 billion traded in the last 24 hours alone.

Meme coins are popular because they can increase in value quickly, but they also attract scammers.

What is a Rug Pull in Crypto?

A rug pull is a scam where the creators of a new coin suddenly sell all their coins at once, causing the price to drop and leaving investors with worthless coins. This scam is common with meme coins because they can become very popular very quickly.

Recent Crypto Scams

In 2024, a report by Immunefi, a company that finds bugs in blockchain systems, said that over $473 million worth of crypto has been lost to scams and hacks. They found 108 incidents of scams by May.

This shows that people need to be very careful when investing in new cryptocurrencies.

Conclusion

The crash of the DORAE coin on the Solana blockchain shows how risky investing in new meme coins can be. While these coins can offer big rewards, they can also lead to big losses if the developers are not trustworthy.

Investors need to be careful, do their research, and watch out for signs of scams.

That's all for today! Tell us about your insights about this article in the comments.

Disclaimer: CoinSoMuch does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read More....