PeckShieldAlert has issued a “rug pull” warning for web 3.0 coin project Dragoma (DMA). Currently, the value of the coin has lost close to 100 percent. Here are the details…
Rug pull in Polygon based web 3.0 coin project
Blockchain security company PeckShield has released the information that the Dragoma game website and all social media accounts of the project have been shut down. It aroused great suspicions that the project was “rug pull”. According to information from blockchain security firm PeckShieldAlert, the gamefi Dragonma project gives the impression of a rug pull. The DMA token is down 99.7 percent. The Dragoma.io website appears to be down and its social media channel has been removed.
#PeckShieldAlert #rugpull Dragoma $DMA on polygon rugged. $DMA has dropped -99.7%.
The website https://t.co/2OJWlGqBtQ seems down and the social media channel deleted. The stolen funds seem like deposit into centralized exchanges. pic.twitter.com/ksJifCo0GH— PeckShieldAlert (@PeckShieldAlert) August 8, 2022
As we have also reported as Kriptokoin.com, Dragoma is built on the Polygon network. It is a Web3 lifestyle sports app with built-in GameFi and SocialFi elements. To implement customization of Web3 assets, it implements a dual-token economic model to provide an open and transparent economic ecology. Adopts NFT in in-app assets.
Notably, the token fell shortly after MEXC Global announced that it would list the DMA/USDT pair in the Assessment Zone. The developers behind the fake project have removed their social media channels. Dragoma’s website is also down at the time of writing. PeckShield noted that bad actors deposited their stolen funds on centralized exchanges.
Rug pull continues to threaten the crypto space
Research firm Chainalysis has recorded 24 rug pulls that caused losses of up to $2.8 billion in the cryptocurrency market in 2021. This figure accounts for 37 percent of the $7.7 billion lost that year due to crypto scams. Also, compared to 2020, rug pull amount and damage has increased significantly.
A rug pull refers to a scam where a project team creates a product, methodically promotes it, then issues tokens and provides liquidity to the project by listing it on DEX exchanges for investors to purchase. According to Chainalysis, either gradually or all at once, “developers eventually drain funds from the liquidity pool, send the token’s value to zero, and it disappears.”
Investors should consider the credibility of the people behind new crypto projects. Investors should be skeptical of new and easily imitated social media accounts and profiles. The whitepaper of the project should offer clues about the quality of the website and other media, and the overall legitimacy of the project. Anonymous project developers can also be a red flag. It is true that the original and largest cryptocurrency in the world, BTC, was developed by Satoshi Nakamoto, who has remained anonymous to this day. However, times are changing.
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