Polygon-Based Crypto Project Rug Pulls Investors, As Token’s Price Crashes to Zero

The price of Dragoma’s token (DMA) has plunged to nearly $0 after the team behind the project pulled the rug on investors. 

According to leading security firm PeckShieldAlert, the value of DMA crashed 99.7% to $0.0004. The unfortunate incident occurred after the token’s value surged to a new all-time high of $1.8 earlier today. 

PeckShieldAlert noted that after the rug pull, Dragoma developers deleted its social media accounts, while the project’s website was also shut down. 

The stolen funds were suspected to have been deposited in an unnamed centralized cryptocurrency exchange, PeckShieldAlert noted. 

“Rugpull Dragoma DMA on polygon rugged. DMA has dropped -by 99.7%. The website http://dragoma.io seems down, and the social media channel deleted. The stolen funds seem like [they were] deposited into centralized exchanges,” PeckShieldAlert tweeted. 

#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

At press time, it is not clear how much was stolen from investors. The unfortunate incident occurred shortly after MEXC Global announced it would list the DMA/USDT pair. Following MEXC’s announcement that it would list DMA, investors became excited about the prospects of the token. 

The announcement played an integral role in pushing the value of the token to an all-time high of $1.8, as many investors rushed to purchase more of the token before it officially got listed on MEXC. 

Unfortunately, little did they know that the team behind the project was planning on pulling the rug on users. 

Cryptocurrency Rug Pulls

Dragoma was a web 3.0 lifestyle sports application with built-in SocialFi and GameFi. The project was built on the leading Ethereum scaling platform, Polygon. 

Dragoma joins the list of malicious cryptocurrency projects that have pulled the rug on investors. Rug pull was widely reported in the crypto space last year.  

As reported by TheCryptoBasic this year, a Binance Smart Chain (BSC) project called BNB42 also pulled the rug on its users, carting away 6400 Binance Coins (BNB).