A Solana-based meme coin called Doraemon (CRYPTO: DORAE) launched on Tuesday spiked to $2.4 billion in market capitalization within only 24 hours before losing over 99% of its value in apparent insider trading.

What Happened: Lookonchain data showed an individual dumping 2.5 million DORAE tokens for 10,538 Solana (CRYPTO: SOL), worth $1.45 million. This caused the price to plummet by over 99%. The tweet suggested that the person behind this massive dump is likely the developer of the token.  

The wallet involved in the dump reportedly received 304 SOL ($41,000) from Kucoin and another wallet to purchase 2.5 million DORAE. The same wallet then sold all the DORAE an hour later, making a profit of 10,234 SOL ($1.41 million) in less than six hours.

The tweet added that the wallet then received 215.7 million DORAE from the deployer wallet. This on-chain data suggests a connection between the wallet dumping 2.5 million DORAE and the deployer of DORAE.

Also Read: Top Trader Wonders If ‘Safer Big Caps Like Pepe, Dogecoin’ Will Outperform His Meme Coin Portfolio

Why It Matters: Doraemon, a cat-themed token, is the latest Solana meme coin that ran up to $2.4 billion market capitalization and plunged to under $10 million within 11 hours. It highlights the risk of so-called pump-and-dump coins and insider trading, that have been a problem in the meme coin space.

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next: This Trader Reportedly ‘Lost It All, $12M Gone Forever’ After Going ‘All In’ On Ethereum

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