The Doraemon (DORAE) token, a meme coin based on the Solana blockchain, has seen a dramatic price drop following allegations of a possible rug pull by its developer.

Within minutes, the price of DORAE plummeted to nearly zero. According to data shared by blockchain analyst Lookonchain, suspicious activities were observed involving wallets associated with the Doraemon developer.

Specifically, the developer of this Solana-based meme coin moved significant amounts of DORAE tokens to an exchange and sold them for Solana (SOL). This massive sell-off resulted in the immediate collapse of the Doraemon token's price. Reports indicate that DORAE's value dropped by over 99% in a very short time.

"Doraemon ($DORAE) rug pull suspected! Someone sold all 2.5M $DORAE for 10,538 $SOL ($1.45M), causing the price to drop by more than 99%! On-chain data suggests that the seller is likely the developer," Lookonchain reported on their X account.

On-Chain Evidence Points to Developer's Wallet

The on-chain data revealed that the wallet responsible for dumping the meme coin received 304 SOL, valued at over $41,000, from the cryptocurrency exchange Kucoin.

The wallet's owner then purchased 2.5 million DORAE tokens and subsequently sold them all for 10,538 SOL, worth approximately $1.45 million. This transaction netted the wallet a profit of 10,234 SOL, or $1.41 million, in less than six hours.

"On-chain data clearly shows that the wallet which dumped 2.5M $DORAE is linked to the deployer of $DORAE," Lookonchain stated.

This incident comes at a time when the Solana ecosystem is witnessing a surge in meme coins. Data from CoinMarketCap shows that the market cap of this sector is currently $48 billion, with over $4.6 billion worth of these tokens traded in the last 24 hours alone.

The Risks of Hacks and Rug Pulls in the Crypto Space

Meme coins are known for their extreme volatility. While some top-performing tokens attract new investors seeking the next big opportunity, malicious actors often exploit this trend by creating dubious projects with no real value, leading to rug pulls or large sell-offs that hurt unsuspecting buyers.

A recent report by blockchain security firm Immunefi highlighted that over $473 million in cryptocurrencies have been lost to hacks and rug pulls in 2024 alone. The firm documented 108 incidents across the blockchain ecosystem by May of this year.