Polygon-Based Game Dragoma Has Been Rug Pulled, Token Falls 99%

A Polygon-based Web3 lifestyle sports application, Dragoma (DMA), has been rug pulled as the website has been shut down and social media accounts have been deleted.

Blockchain security firm PeckShield confirmed via a Twitter post late Sunday that Dragoma was rug pulled. The firm also added that the funds have been transferred to centralized exchanges.

"Dragoma $DMA on polygon rugged. $DMA has dropped -99.7%. The website http://dragoma.io seems down and the social media channel deleted. The stolen funds seem like deposit into centralized exchanges," PeckShield revealed.

Dragoma is based on Polygon blockchain and players of the game purchase dragon NFTs "in-app" to use them in the game. The dragons are raised, trained and used for battles. Users earn DMA for all such activities.

The platform made huge promises, including expansion in the Web3 world, with "unlimited possibilities." It further said that "a small part of its functions will be launched in 2022. Live broadcast, advertising spaces, shopping malls, etc. will be embedded in it, bringing additional income to users."

Interestingly, the rug pull comes almost immediately after the DMA token was listed on MEXC, a cryptocurrency exchange.

"It's crazy how this happened. I guess no one saw this coming. I spoke to a #MEXC customer support and they said that they too were frustrated about this. They've suspended the trading and are working on fixing things up," commented a Twitter user @Sochman11.

According to CoinMarketCap, the DMA token rose 21% for the week ending on Aug. 31. DMA opened the daily candle for July at $0.0471 and by Aug 5., 1 DMA was priced at $0.5178, marking a sharp rise of around 1000%.

This was not it. On Saturday, the daily candle for DMA opened at $0.5175 and went on to make a daily high of $0.8374, almost doubling in a single day. However, by Sunday, the token crashed 99% and was rug pulled.

The creators have dumped the tokens on the investors, as hinted by the surprisingly upward movement of the token in the last few weeks.