Earlier on Wednesday, the blockchain data analytics account Lookonchain revealed details of a potential rug pull involving the Solana-based meme coin Doraemon.
This alleged rug pull caused a dramatic collapse in the price of DORAE, the native token of Doraemon, which plummeted by over 99% within hours.
DORAE Rug Pull
In a post on X, Lookonchain reported that a wallet identified as 3TQYNN…yFAccW dumped approximately 2.5 million DORAE, exchanging them for 10,538 SOL, valued at $1.45 million.
Doraemon( $DORAE ) rug!
Someone dumped all 2.5M $DORAE for 10,538 $SOL($1.45M), causing the price to drop by more than 99%!
1/ Some on-chain data suggests that this person is likely the developer. pic.twitter.com/5sMPwILkR0
— Lookonchain (@lookonchain) June 26, 2024
According to the post, on-chain data suggests that the wallet is likely owned by the project’s developer. This analysis indicates that the address originally received about 304 SOL from a Kucoin-based wallet CEHgjR…Y45a9z. This entity used the SOL to purchase 2.5 million DORAE before the upsurge.
The wallet later sold the entire DORAE stash for 10,538 SOL, making 34x gains after less than six hours of holding the tokens.
The on-chain analysis traces the origin of the 304 SOL to a deployer wallet with the address CKEfb2…HQWuUR. Based on this evidence, on-chain analysts, including Lookonchain, conclude that the wallet responsible for dumping is closely linked to the deployer of DORAE tokens. Following the mass dumping of DORAE tokens, the price plummeted by a staggering 99%.
A crypto enthusiast on X speculated about DORAE, suggesting that the developer behind it may be the same individual responsible for launching other tokens with rapid price increases, often followed by rug pulls. The sentiment expressed was that DORAE might create an illusion of generating significant wealth, while in reality, the developer could rug pull it multiple times.
Earlier, some in the community celebrated the rise of DORAE, terming it “the first cat coin to a billion.” However, the community immediately reacted, with some calling DORAE “the greatest RUG of all time.”
The Rug Pull Problem in Crypto
Since the start of the Solana meme coin season earlier this year, such occurrences have been a commonality. For instance, the Solana-based meme coin Catwifhat (CIF) has suffered multiple rug pulls since its birth.
In April, on-chain sleuth ZachXBT highlighted that about 12 Solana-based crypto meme coins, which raised a cumulative $26 million, had gone dead. Zach even listed a few founders and X accounts that everyone should avoid projects associated with.
The desire by crypto investors to look for relatively new and low market cap coins exposes them to high risks of being rug pulled.