The DORAE token’s price plummeted to near zero within minutes. Lookonchain, a blockchain sleuth, shared on Wednesday that there were suspicious activities involving the wallets linked to the Doraemon developer, according to on-chain data.
Specifically, the developer of the Solana-based meme coin moved substantial amounts of DORAE tokens to an exchange and liquidated them for Solana (SOL), resulting in an immediate tanking of the Doraemon token’s price. The data revealed that DORAE’s value nosedived more than 99% within minutes.
The owner proceeded to buy 2.5 million DORAE tokens and subsequently dumped all of them for 10,538 SOL valued at $1.45 million. As a result, the wallet made 10,234 SOL or $1.41 million in less than 6 hours.
This potential rug pull on Solana happens as the ecosystem experiences a surge in meme coins, with CoinMarketCap’s data showing the sector’s current market cap stands at $48 billion. In the past 24 hours alone, over $4.6 billion worth of these tokens were traded.
Malicious actors take advantage of this to create dubious projects with no value and frequently rug pull or dump on the unwitting buyers. The blockchain security firm identified 108 incidents that had occurred across the ecosystem by May.