Dogechain is a Pump-and-Dump Scheme, On-Chain Sleuths Say
Aims To Bring DeFi, NFTs and Games To The Dogecoin CommunityDeFi News
Dogechain, a brand-new blockchain promising to make Dogecoin, the hitherto useless meme coin, “much useful now,” may have already broken that vow.
The blockchain, which debuted on Aug. 23, has been called a pump-and-dump scheme by observers who have been tracking the distribution of DC, its native token.
Wallets that received DC before its public launch have been dumping tokens, per on-chain data flagged on Twitter by user SatoshiFixer and shared by crypto sleuth ZachXBT.
One wallet received 20B DC 10 minutes before it became publicly available early Thursday, and bridged 1B tokens to Ethereum. It has since been swapping DC tokens for USDT every couple of minutes, and now holds about $200,000 in the stablecoin. The wallet that supplied the 20B DC, in turn, received 50B DC four days ago from the Dogechain deployer wallet.
Built “by dogecoin holders, for dogecoin holders,” Dogechain is meant to “bring crypto applications like NFTs, games, and DeFi to the $Dogecoin community,” according to its website.
Dogechain is built on Polygon Edge, a modular, ready-to-use, Ethereum-compatible blockchain technology. Holders can bridge their Dogecoin – which runs on its own proof-of-work blockchain – to Dogechain, and receive an equal number of wrapped tokens that can then be used in DeFi and other applications.
The team behind Dogechain is “largely anonymous,” according to crypto data platform CoinGecko, and the foundation supporting Dogecoin has denied any involvement.” But Quickswap co-founder Roc Zacharias has touted his involvement in the project in his Twitter bio. Zacharias is yet to respond to a request for comment from The Defiant.
Of the 1T total supply of DC tokens, 58% have been allocated to the community, per a blog post from Dogechain. That includes developers building on dogechain, operators who secure the network, and early adopters of the platform.
The remaining 42% would be split among the developers who built Dogechain, a Dogechain foundation, a treasury, marketing and “initial liquidity and market-making.” Only the treasury, foundation and market-making would receive some percent of their DC upfront, with the others having vesting periods of two or five years.
Despite selling pressure from early claimants, the price of DC has held steady, per data from CoinGecko.
When it debuted shortly after midnight Thursday, each DC was worth about a fifth of a penny. Despite plummeting more than 60% minutes later, it has since recovered, and was trading at a little less than one-fifth of a penny on Friday morning New York time.
DC Price. Source: Coingecko