As an experienced analyst, I’m deeply concerned about the recent turn of events regarding the Doraemon (DORAE) meme coin on Solana. The sudden and massive price decline following reports of a potential rug pull by the developer is not only disappointing but also a stark reminder of the risks associated with investing in new and unproven crypto projects.
Doraemon (DORAE), the newly popularized meme coin, has recently suffered a significant drop in price due to rumors of a potential scam or exit scam by its creator.
Within minutes, the value of a DORAE token drastically dropped close to zero based on on-chain reports disclosed by investigation firm Lookonchain on Wednesday. They revealed questionable transactions connected to the wallets associated with the Doraemon project developers.
The developer behind the meme coin built on the Solana blockchain, Doraemon (DORAE), suddenly transferred massive quantities of tokens to an exchange and sold them for Solana (SOL). Consequently, the price of Doraemon plummeted dramatically, with its value dropping over 99% almost instantly.
As a crypto investor, I was taken aback when I saw a massive sell-off of $DORAE tokens worth around 2.5 million dollars for only 10,538 Solana ($SOL), which translates to approximately $1.45 million. This sudden transaction caused the price of $DORAE to plummet by over 99%. According to Lookonchain’s latest update on their X account, some on-chain data points towards the developer as the likely culprit behind this shocking move.
As an analyst, I’ve noticed some intriguing activity in the Doraemon ($DORAE) market. Specifically, there was a transaction where approximately 2.5 million $DORAE tokens were sold for around 10,538 Solana ($SOL), equivalent to roughly $1.45 million. This transaction caused the price of $DORAE to plummet by over 99%.— Lookonchain (@lookonchain) June 26, 2024
On-chain data points to developer wallet
As a data analyst, I’ve uncovered some intriguing information regarding a specific wallet associated with the recent launch of a new meme coin. According to on-chain records, this wallet received approximately 304 Solana (SOL) tokens, which equate to over $41,000 at current market prices, directly from crypto exchange Kucoin. This transaction raises questions about potential insider trading or strategic coin distributions. However, it is essential to remember that correlation does not imply causation, and further investigation is necessary to draw definitive conclusions.
As a researcher studying transaction data, I came across an intriguing observation. The wallet owner purchased a significant amount of DORAE tokens, specifically 2.5 million, within the scope of my analysis. Shortly following this purchase, they swiftly sold all the acquired tokens for approximately 10,538 SOL, which equated to a value of around $1.45 million. Consequently, the wallet realized a profit of roughly 10,234 SOL or $1.41 million within a relatively short timeframe of under 6 hours.
According to the on-chain information, the wallet responsible for transferring 2.5 million $DORAE tokens appears to be connected to the deployer of the $DORAE token. (Lookonchain’s observation)
As a researcher examining the Solana ecosystem, I’ve come across a potential red flag: a possible rug pull. This warning comes amidst an escalating trend of meme coins within the Solana universe. According to CoinMarketCap, this sector currently boasts a market capitalization of around $48 billion. Intriguingly, over $4.6 billion in trading volume of these tokens has been exchanged just within the past 24 hours.
Hacks and rug pulls in crypto
Meme coins are known for their extreme price swings, with some coins experiencing meteoric rises that attract a lot of new investors in search of the next big thing. Unfortunately, there are malicious actors who exploit this volatility by creating and promoting worthless projects. These bad actors may then “rug pull,” or suddenly abandon the project, leaving investors holding worthless assets, or “dump” their own coins on the market, causing prices to plummet for everyone else.
In a recent disclosure, Immunefi – a leading blockchain bug bounty platform – reported that over $473 million in cryptocurrency were stolen through hacks and rug pulls last year, up to May. The security firm documented a total of 108 such occurrences across the ecosystem.
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2024-06-26 17:58