Draaagin in Yo-kai Watch 2

After the initial encounter with him at Excellent Tower, Draaagin can be found under cars, vending machines, in boxes and in piles of garbage in Downtown Springdale and in Paradise Springs.

He can also be freed from the present Crank-a-kai with a Light Blue Coin and the past with a Special Coin.

Draaagin is required for a Baffle Board in Abandoned Tunnel west that allows access to the east after a few in-game days. This is required for the quest Treasure Hunters Pt. 3.