The Bitcoin and altcoin market, which follows a constantly fluctuating trend, can expose investors to significant risks from time to time. Recently, the on-chain data analysis platform Lookonchain announced a major sell-off in the altcoin project named Doraemon (DORAE). This situation can pose serious risks for investors.
Doraemon (DORAE) Sell-Off Details
According to Lookonchain’s announcement, a $2.5 million sell-off took place in the cryptocurrency Doraemon (DORAE), which was observed to decrease the coin price by up to 99%. Additionally, it was noted that the wallet conducting the sell-off was associated with DORAE’s distributor. This can raise serious concerns for investors.
Rug Pull and Fraud Risks
Rug Pull, an increasingly prevalent threat in the world of cryptocurrency, is a serious type of fraud that can lead investors to lose their assets. Fraudsters lure investors with high return promises and then disappear suddenly. Therefore, it is important for investors to be cautious and thoroughly research projects.
Avoidance Strategies for Risks
- Conduct Research Before Investing: It is important to conduct thorough research on a crypto project before investing and to learn about the team behind the project, their goals, and future plans.
- Be Cautious of Very High Return Promises: Avoid projects that make unrealistic and excessively high return promises.
- Examine Community Opinions: By reviewing the opinions and experiences of other investors regarding the project, you can make a more informed investment decision.
- Avoid Anonymous Teams: If you cannot find detailed information about the team developing the project and the team is anonymous, it is advisable to stay away from that project.