The newly launched Polygon play-to-earn cryptocurrency project, Dragoma, has been allegedly rug pulled just a few days after launching. This announcement was made by a high-profile blockchain security company, PeckShield, via its verified Twitter handle.
Dragoma Investors Lost Over $1 Million To Rug Pull
Crypto enthusiasts have again fallen victims of rug pull via Web3 lifestyle sports application, Dragoma. There were many expectations for the Dragoma application and its native token, DMA.
The entry of the token into the cryptocurrency market was thrilling and shocking. Despite the current bears and winter in the cryptocurrency market, the token reached a high of $1.78. Following the peak, activity and transactions surged on the network.
Earlier on Monday, the token suddenly crashed to $0.0023, losing over 99.8% from its $1.78 high in under 4 hours. The crash was triggered by the massive transfer of funds from the project to different exchange wallets.
The rug pull announcement was made known by PeckShield company, who quickly discovered the situation. The Dragoma website, Twitter, Telegram, and other social media handles have been deactivated.
There are ongoing investigations to determine the extent of the loss made by investors. However, an unverified Twitter account claimed to have lost $10,000 to the rug pull incident.
USDT and MATIC worth 420k and 880k were transferred from the project to centralized wallets. According to Polygonscan, there were over 5000 active wallet addresses on the DMA token network before the pull.
Immediately after the announcement of the rug pull, the MEXC exchange banned trading DMA tokens on its platform. The suspension was announced to be indefinite till the “absurd on-chain transfers of DMA” are resolved.
DMA Grand And Progressive Entry Ends Abruptly
Dragoma, a Web3 crypto gaming and sports application was launched a few days ago on the Polygon blockchain network. Dragoma was built with none fungible token elements to allow crypto enthusiasts to earn with games and adventures via its token, DMA.
The creation and development of the game were announced months ago by Ken Grease, who found the game. The dragon play-and-earn game was also built with social media and animations to create a more adventurous user experience.
Following its launch, the game was rated the best on the Polygon network based on power and flexibility. Gamers could build dragons, train them and compete with fellow gamers to win rewards and trophies.
Dragoma received much interest and exposure as different cryptocurrency gamers invested in the native token. DMA token was listed on MEXC centralized exchange amassing dollars in volume. DMA was rated as one of the market’s top gaining tokens after garnering over 150 rally%.
However, the progressive growth on the gaming platform came to an abrupt end earlier today, with a 99.5% drop in price. Approximately $4 million was rug pulled on the Dragoma token network. According to PeckShield, the million dollars was moved from the DMA project to centralized exchange wallets.