Critical Rug Pull Alert: That Altcoin Dropped 99 Percent!

While the Bitcoin and altcoin market has been going up and down lately, investors are more alert than ever. In this context, on-chain information analysis platform Lookonchain announced that there was a large sale in the cryptocurrency named Doraemon (DORAE) and this situation may pose a risk for investors. In the light of the statement made on Lookonchain’s Twitter account and the information shared by the platform, in this news we will examine the details of the sale in Doraemon, its possible reasons and what this situation means for investors.

Selling alarm in altcoin project: Rug pull?

While the cryptocurrency market has been going up and down recently, on-chain data analysis platform Lookonchain warned investors. In the statement made on Lookonchain’s Twitter account, it was stated that there was a major sale in the cryptocurrency named Doraemon (DORAE). In its post, Lookonchain said, “The available on-chain information clearly shows that the wallet selling DORAE worth $2.5 million is related to the distributor of DORAE.” The post also included the Solscan link where the transfer history of the wallet where the sale in question was made can be viewed. In addition, it is seen that the coin price dropped by 99 percent following the development.

The reason for the sale, which was not included in Lookonchain’s statement, is now unknown. However, the general calmness and price declines in the cryptocurrency market may cause investors to sell their assets. When Doraemon (DORAE) is examined specifically, the recent loss of value may have caused large investors to take action. Lookonchain’s post emphasized once again that cryptocurrency investors should always closely follow the movements in the market. Particularly large sales can cause volatility in the market and cause losses to investors.

What is rug pull?

Rug Pull, translated into Turkish as “rug pulling”, is a type of fraud that has become increasingly common in the cryptocurrency world in recent years. In this type of fraud, fraudsters first develop a cryptocurrency project that promises high returns in a way that attracts investors. As interest in the project increases and investors transfer their funds, the fraudsters suddenly collect all the money and disappear. This causes investors to lose all their assets. The main features of this type of fraud are as follows:

• Promise of high returns:Scammers make unrealistic and exaggerated returns promises to attract investors.
• Fake road map:Scammers may prepare a bogus roadmap and whitepaper to increase faith in the project.
• Liquidity Problem: Rug Pull projects often experience liquidity problems. This causes investors to not be able to buy and sell tokens easily.
• Anonymous group: The team behind Rug Pull projects is mostly anonymous. This makes it difficult to follow the scammers’ tracks.