In the latest reports from the Polygon blockchain, Dragoma has turned out to be a rug pull. Dragoma is a sports application that has been built on Polygon, which has been built around Web3 lifestyle.
Dragoma Rug Pull
The cryptocurrency community has been victimized by yet another major rug pull. This time, the rug pull was based on the Polygon blockchain, reportedly known as Dragoma.
Dragoma (DMA) Lost 99% Value
According to PeckShield, a major security and blockchain intelligence firm, DMA has ended up losing 99% of its value. DMA is the native token that is powered by Dragoma.
It was due to the rug pull incident that the trading value of DMA ended up losing 99% of its overall value.
Pre-Rug Pull Performance of DMA
Prior to the rug pull, the trading price of DMA had experienced a significant push. On August 8, the trading price of DMA rose to $1.82, which was the all-time high the digital asset had hit.
The data was recorded through MEXC, a cryptocurrency exchange that is based in Singapore. MEXC was among the very few cryptocurrency exchanges that had listed DMA as an open trading (DMA/USDT) asset.
However, the exchange had made it clear that the token had been placed within the Assessment Zone (AZ) for further reviewing.
As the price of DMA kept rising, more investors kept joining the protocol, hoping to generate high gains from their investments. Unbeknownst to them, they were getting trapped in a rug pull.
Just when the trading value of DMA went as high as $1.82 per DMA, the team behind the development of the token proceeded with the rug pull. Right after the rug pull, the trading value of DMA crashed tremendously.
Up until now, 99% of the total value of the DMA token has been lost. The rug pull has caused nothing but devastation among the investors who had trusted the protocol and had invested heavily in it.
Unresponsive Website and Early Investigation Results
According to many users, the website of the Drogma platform has been shut down. Even the social media accounts and profiles representing Drogma have all been deleted by the team behind the protocol.
This is not the first time a rug pull has taken place in the year 2022. Ever since the cryptocurrency sector has started gaining strength, rug pulls seem to have become a common fraudulent scheme.
This is the reason why cryptocurrencies are never able to gain the full trust and confidence of investors.
The recent Dragoma rug pull has cost over $4 million, which means that many users have been deprived of their investments.