Scamming and hacking activities seem to be skyrocketing within the crypto industry. Even with the increase in innovation and technological application in the crypto space, criminals are also advancing in their operations. They are putting in more confusing and convincing measures to siphon money from their victims without much stress.
In recent news, Dragoma, a newly launched Web3 game on Polygon, has been rug-pulled. PeckShield, a blockchain sleuth, reported that the project had a rug pull resulting in a loss worth about $3.5 million. Also, the siphoned funds have been transferred to centralized exchanges.
Dragoma is a Web3 gaming project newly launched on the Polygon network in the past few days. Ken Graese, the founder of the project, is based in Texas. Its development is centered on built-in GameFi and SocialFi elements.
It would use NFTs and social media elements with its token. The project intends to operate a transparent and open economic ecosystem. Hence, it would apply a dual-token economic model and in-app assets of NFTs.
Its native token is DMA created on the Polygon network. Also, the token has been listed on centralized exchanges MEXC recently, leading to raising millions of dollars in volume.
Dragoma is intended to leverage the flexibility of the Polygon network and provide users with ultra-fast transactions. Also, users are to get fair justice with an open gaming atmosphere and transparent data.
According to the report from PeckShield, the price of $DMA has plummeted by over 99% due to the rug pull. Its price fall is more conspicuous.
#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
The native coin had previously peaked at $1.78. Also, Dragoma official website is currently under development, while the social media channel has been deleted. It is yet to release any comment regarding this situation of things on the platform.
Some Part Cases of Rug Pull In The Crypto Industry
The crypto industry has witnessed a series of rug pull in the past. Research from Chainalysis, a blockchain analytics firm, 2021 revealed that cryptocurrency victims lost over $2.8 billion through rug pulls.
A rug pull is a malicious siphoning of investors’ funds by crypto developers who later abandon the project. This means the sole purpose of the developers is to scam investors.
In April 2021, the crypto exchange Thodex was hit with a rug pull. The founders absconded with more than $2 billion of users’ funds. This stands as the most significant rug pull recorded in the crypto industry.
Cryptocurrency market follows an upward trend on the daily chart | Source: Crypto Total Market Cap on TradingView.com
Anubis DAO, a project inspired by Dogecoin, lost $58 million in a similar event. Also, a rug pull of about $50 million hit Uranium Finance, a project built on the Binance Smart Chain (BSC).
Featured image from Pixabay, chart from TradingView.com