The funds have been siphoned out of the project and into centralized exchanges.
The newly launched Dragoma project appears to have been subject to a rug pull worth an estimated $3.5 million, according to blockchain sleuth PeckShield.
Dragoma, which launched just days ago, had said it planned to become a Web3 adventure game that incorporated NFTs and elements of social media alongside its native token, DMA.
The token, which was created on Polygon, was recently listed on centralized exchange MEXC, generating millions of dollars in volume.
The project’s website is not responding and its social media channel has been deleted, PeckShield said.
At its peak, the DMA token reached $1.78. It tumbled Monday morning, losing 99.8% of its value.
The missing funds have been moved to centralized exchanges, according to PeckShield.
The founder of Dragoma is Texas-based Ken Graese, according to a June press release.