Doraemon (DORAE) is the latest meme coin to experience a massive price decline following reports of a potential rug pull by the developer.
The DORAE token’s price plummeted to near zero within minutes. According to on-chain data that blockchain sleuth Lookonchain shared on Wednesday, there were suspicious activities involving the wallets linked to the Doraemon developer.
Specifically, the Solana-based meme coin’s developer moved huge amounts of DORAE tokens to an exchange and liquidated them for Solana (SOL). The result of the selling was an immediate tanking of the Doraemon token’s price. Data showed DORAE’s value nosedived more than 99% within minutes.
“Doraemon( $DORAE ) rug! Someone dumped all 2.5M $DORAE for 10,538 $SOL ($1.45M), causing the price to drop by more than 99%! Some on-chain data suggests that this person is likely the developer,” Lookonchain posted on their X account.
On-chain data points to developer wallet
On-chain data shows the wallet that dumped the new meme coin received 304 SOL worth over $41,000 from crypto exchange Kucoin.
The owner proceeded to buy 2.5 million DORAE tokens and dumped all of them for 10,538 SOL valued at $1.45 million. Accordingly, the wallet made 10,234 $SOL or $1.41 million in less than 6 hours.
“From the on-chain data, it is clear that the wallet dumping 2.5M $DORAE is related to the deployer of $DORAE,” Lookonchain noted.
This potential rug pull on Solana comes as the ecosystem experiences a surge in meme coins, with data on CoinMarketCap showing the sector’s market cap is currently $48 billion. A total of over $4.6 billion worth of these tokens has been traded in the past 24 hours alone.
Hacks and rug pulls in crypto
Meme coins often see massive volatility, with top performers skyrocketing to see new investors hunting for the next gem. Malicious actors take advantage of this to create dubious projects with no value and often rug pull or dump on the unwitting buyers.
In a recent report, blockchain bug bounty platform Immunefi revealed that more than $473 million worth of crypto had been lost to hacks and rug pulls in 2024. The blockchain security firm identified 108 incidents had happened across the ecosystem by May.