While the Bitcoin and altcoin market has been on a roller-coaster ride lately, investors are more alert than ever. In this context, on-chain data analysis platform Lookonchain announced that there was a major 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 Altcoin 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 stated, “The available on-chain data clearly shows that the wallet selling DORAE worth $2.5 million is associated with the distributor of DORAE.” The post also included a Solscan link where the transfer history of the wallet where the sale was made can be viewed. It is also seen that the coin price dropped by 99 percent after the development.
The reason for the sale, which was not included in Lookonchain’s statement, is not yet known. However, general stagnation 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 once again emphasized that cryptocurrency investors should always closely follow the market movements. Sales, especially in large quantities, can cause volatility in the market and cause losses to investors.
What is rug pull?
Rug Pull is a type of fraud that has become increasingly common in the cryptocurrency world in recent years. In this type of fraud, fraudsters develop a cryptocurrency project that promises high returns to attract investors in the first place. As interest in the project grows and investors transfer their funds, the scammers 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 promise unrealistic and exaggerated returns to attract investors’ attention.
- Fake roadmap: Scammers may create a fake roadmap and whitepaper to increase trust in the project.
- Liquidity Problem: Rug Pull projects often experience liquidity problems. This leaves investors unable to easily buy and sell tokens.
- Anonymous team: The team behind Rug Pull projects is usually anonymous. This makes it difficult to follow the scammers’ tracks.
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