Doraemon (DORAE) is the latest meme coin to suffer a significant price drop after reports surfaced about a possible rug pull by the developer. The DORAE token’s price fell to nearly zero within minutes. According to on-chain data shared on Wednesday, there were suspicious activities involving wallets linked to the Doraemon developer.

Specifically, the Solana-based meme coin’s developer moved large amounts of DORAE tokens to an exchange and liquidated them for Solana (SOL). This selling activity caused an immediate crash in the Doraemon token’s price. Data indicated that DORAE’s value plummeted by 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 noted.

On-chain data shows that the wallet responsible for dumping the new meme coin received 304 SOL worth over $41,000 from a crypto exchange. The owner then bought 2.5 million DORAE tokens and sold them all for 10,538 SOL, valued at $1.45 million. Consequently, 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 highlighted.

This potential rug pull on Solana occurs as the ecosystem sees a surge in meme coins. The sector’s market cap is currently $48 billion, with over $4.6 billion worth of these tokens traded in the past 24 hours alone.

Hacks and Rug Pulls in Crypto

Meme coins often experience extreme volatility, with top performers soaring and attracting new investors looking for the next big thing. Malicious actors exploit this by creating dubious projects with no value, often rug pulling or dumping on unsuspecting buyers.

A recent report from a blockchain bug bounty platform 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 across the ecosystem by May.

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