PeckShield, a blockchain intelligence, and security company claim that the project’s native token, DMA, lost more than 99 percent of its value.
The most recent instance of such an incident in the cryptocurrency realm included Dragoma, a Web3 lifestyle sports application based on Polygon.
After being listed on MEXC, the price of its native token, DMA, has dropped to zero.
On August 8, DMA reached a record high when the Singapore-based cryptocurrency exchange MEXC announced the token’s listing in the Assessment Zone and the start of trading for the DMA/USDT trading pair.
After the group behind the phony software pulled the rug out from under it, DMA eventually dropped to almost nil.
The main website for Dragoma is currently unavailable, and all of the social media profiles have been erased by the developers.
The findings of PeckShield also showed that it appears that the stolen money was put into centralized exchanges.
Rug pulls, according to many experts, are a common but less complex crime in the cryptocurrency sector.
A Dogecoin knockoff by the name of “TeddyDoge” pulled the rug out from under its customers last month after pumping and dumping its native token, TEDDY.
Senator Kevin Thomas of New York State presented Senate Bill S8839 earlier this year in an effort to combat the rising instances of rug pulls and other frauds involving the transfer of virtual tokens, the abuse of private keys, and hidden interests in cryptocurrency projects.
The new measure seeks a legislative modification that wants to punish developers who sell more than 10% of such tokens within five years of the last sale of such tokens with rug pull fees.
