Polygon-based token drops to zero in rug draw scam

Alex Dovbnya

Dragoma, a Polygon-based project, ends up being a carpet pulling scam

Dragoma, a Polygon-based Web3 sports app that combines GameFi and SocialFi elements, has pulled the rug on its users, according to security firm PeckShield.

The native DMA token plunged 99.8% to virtually zero shortly after hitting a new all-time high of $1.81 on August 8.

Notably, the token crashed shortly after MEXC Global announced that it would list the DMA/USDT pair in its evaluation zone. Disgruntled users harshly criticized the decision to list the token.

The developers behind the ake-the-money-and-run sham project have removed social media channels. Dragoma’s website is also down at the time of writing.

PeckShield noted that bad actors have already deposited their stolen funds on centralized exchanges.

According to a report published by Chainalysis, cryptocurrency investors lost $8 billion to rug pullbacks in 2021.

Last June, Polywhale Finance, a popular yield farm powered by the Polygon network, ended up being a “soft carpet” exit scam, with its founders running off with investors’ money.

Recently, Polygon and Fantom services suffered a DNS attack that directed potential victims to malicious websites.

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