Polygon-based project suspected to be rug scam as Token dips 99.88%

Lavina Daryanani
Source: Coincu News

Polygon-based Web3 lifestyle sports application Dragoma is suspected to be a rug pull scam. Simply put, a rug pull refers to fraud schemes where mostly anonymous founders trick people into investing money into their crypto project. After amassing funds, and promising gains, executives usually suck out liquidity, go missing and abandon projects.

Polygon-based DGM crashes

At press time, the Polygon-based project’s website, dragoma.io, was down—giving a concrete reason to believe that the project had been abandoned. The project, notably, had built-in GameFi and SocialFi elements.

Dragoma website || Source: dragoma.io

PeckShield further revealed that Dragoma’s social media channels were also deleted. Per the blockchain security and data analytics company, the stolen funds have been moved to centralized exchanges.

The project’s native token had shed most of its value [>99%] on Friday. Per CMC’s data, Dragoma [DMA] was trading around its ATH of $1.67 on Saturday. Even on Sunday, it was trading around its highs. Notably, the token also made it to the list of Coin Truster’s best performers of the day.

On Sunday, MEXC Global announced that it would list the DMA/USDT pair in its Assessment Zone. There was some cheer with respect to the listing, but the same couldn’t last for long.

Post the rug-pull speculations started doing the rounds, the token’s price deflated, and DMA was priced at $0.001821 at press time, down by 99.88% over the past 24 hours.

On CoinGecko, over 1340 people favored this token, while DMA was on 1825 watchlists on CMC. However, people from the space had started ringing the bearish bells around 10 hours back.

On CMC, ‘JeffelonDone’ was bearish and exclaimed, “DMA dumping dumping.” Furthermore, another user, ‘nekuwyh8vmdw,’ had already bid farewell by posting “DMA sayonara.”

Community reactions || Source: CMC