Dragoma token crashes 99.9% following rug pull scam

LAGOS (CoinChapter.com) — The price of Dragoma’s token (DMA) has plummeted to nearly $0 after the team behind the project pulled the rug on investors.

In detail, the value of Dragoma, a Polygon-based Web3 protocol token, crashed by 99.9% to $0.001 on the day. Data from Coingecko revealed that the incident happened after the tokens surged to a new all-time high of $1.8 on August 7.

PeckShield, blockchain security and data analytics firm, noted that the team behind Dragoma had deleted its social accounts. A quick check also revealed that the project’s website was shut down. Also, Dragoma’s Twitter handle at press time shows “this account doesn’t exist.”

Notably, the DMA crash came hours after MEXC Global announced that it would list the DMA/USDT pair in its assessment zone. Users criticized the listing that triggered the token rise before the massive crash.

Additionally, the amount stolen from investors is still unknown at the time of publication. However, PeckShield noted that the team behind the rug pull project has already deposited their stolen funds to centralized exchanges.

Rise In Crypto Rug Pulls

Meanwhile, Dragoma’s rug pull is coming weeks after Teddy Doge, one of Dogecoin’s impersonators, duped investors. The BNB Chain-based Teddy Doge (TEDDY) token plunged more than 99.9% in 24 hours after selling more than $4.5 million tokens.

PeckShield also announced the rug pull, saying the team developers deployed the contract and transferred a substantial amount of TEDDY to an address before pumping and dumping the TEDDY price.

Additionally, in June, Polywhale Finance, another Polygon-based project, ended up being a “soft rug” exit scam with its founder ripping-off investors. Furthermore, this year a Binance Smart Chain (BSC) project called BNB42 also pulled the rug on its users, carting away 6400 Binance Coins (BNB).

Meanwhile, it is worth noting that cryptocurrency investors lost a whopping $8 billion to rug pulls back in 2021, according to Chainalysis. Notably, rug pull made up 37% of the total illicit revenue from crypto scams last year. Additionally, in 2020 rug pulls accounted for just 1% of the under $5 billion in total illicit revenue.