On-chain data shared by Lookonchain reveals suspicious movements from the Doraemon developer’s wallets. According to the data, the developer transferred a large amount of DORAE tokens to an exchange and immediately sold them for Solana (SOL). This mass sell-off led to an immediate collapse in the price of the DORAE token. Data shows that the DORAE value lost more than 99% of its value in just minutes.

Lookonchain shared on his social media account, “Doraemon($DORAE) rug! Someone sold all 2.5 million $DORAE for 10,538 $SOL ($1.45 million), which caused the price to drop by more than 99% “On-chain data shows that this person is most likely a developer.”

On-chain data confirms that the suspicious selling wallet received 304 SOLs worth over $41,000 from cryptocurrency exchange Kucoin. The wallet owner then purchased 2.5 million DORAE tokens using these SOLs and immediately sold all his DORAEs for 10,538 SOLs worth approximately $1.45 million. As a result of these transactions, it is estimated that the wallet earned a profit of $ 1.41 million in just 6 hours.

Lookonchain highlights that on-chain data clearly shows that the wallet selling a large amount of DORAE tokens is associated with the distributor of DORAE. This situation raises strong suspicions that the transactions in question may be a “rug pull” attempt.

Rug pull is a frequently encountered fraud method in the cryptocurrency market. In this method, developers release a cryptocurrency that has no real usability. They then sell large amounts of tokens on exchanges, increasing the price and attracting investors to the project. Finally, developers sell all their tokens at once, crashing the price and leaving investors with worthless assets.

The Solana ecosystem is currently going through active times with the boom in meme coins. The total market value of the meme coin industry is currently around $48 billion. It is seen that a total of 4.6 billion dollars of transactions were made from these tokens in the last 24 hours.

Meme coins are generally known as assets with high volatility. While some meme coins experience skyrocketing values, many others lose value rapidly. This situation poses a significant risk for investors. Malicious actors can take advantage of this high volatility to attempt fraud such as rug pull.

Blockchain bug bounty platform Immunefi found in its recent report that there will be a total loss of over $473 million due to cryptocurrency attacks and rug pulls in 2024. The blockchain security company noted that there had been 108 different rug pull events across the ecosystem through May.