Wallet Linked to US Crypto Theft Launches Solana Meme Coin — Sees 97% Plummet Overnight

Wallet Tied to US Crypto Theft Launches Solana Memecoin — Plunges 97% Overnight

A new meme coin on the Solana blockchain, named John Daghita (ticker: LICK), has experienced a drastic decline shortly after its launch. Linked to a wallet involved in a significant crypto theft from U.S. government-controlled assets, the token saw its market valuation plummet by over 97%, raising concerns about the concentration of token supply and potential market manipulation.

Key Takeaways

The Solana-based meme coin LICK surged to a market cap of $915,000 before collapsing over 97% to approximately $27,700.
Analysis revealed that the deployer wallet held nearly 40% of the total supply at launch, raising red flags for market control.
The token's deployer is linked to a U.S. government crypto theft investigation, prompting scrutiny from blockchain analysts and U.S. policymakers.
The incident highlights ongoing issues in Solana’s meme coin space, with many tokens showing characteristics of fraud or manipulation.

Overview of the LICK Token Collapse

A meme coin called John Daghita (ticker: LICK) has made headlines following its drastic decline on the Solana blockchain. This token, created via the Pump.fun launchpad, saw a rapid surge to a market capitalization of around $915,000. However, just hours into trading, its value plunged by over 97%, eventually dropping below $25,000 and currently hovering around $27,700.

Trading Activity

Insights from Onchain Analysis

Onchain data indicates that the wallet responsible for deploying LICK accumulated tokens early on, when market capitalization was still below $21,000, making four purchases before the token's steep increase and subsequent collapse.

Concentrated Supply Raises Concerns

The blockchain analytics firm Bubblemaps conducted an analysis revealing that the LICK deployer held approximately 40% of the total token supply at the time of its launch. This concentration is considered a potential warning sign as it gives those in control the ability to manipulate price movements and liquidity.

Bubblemaps further identified that the individual linked to this deployer wallet is also suspected of being involved in the alleged theft of millions of dollars from U.S. government-controlled cryptocurrencies. The wallet's association with these funds came to light thanks to investigations by ZachXBT, a blockchain investigator, who pinpointed the connection between wallet addresses and extensive crypto holdings.

Link to Government-Seized Assets

ZachXBT mentioned in a recent post that the individual operating under the name "John Daghita," also referred to as “Lick,” held control over wallets that contained around $23 million during a recorded disagreement with another person in a Telegram group. Research indicates that Command Services & Support, run by Dean Daghita, received a U.S. Marshals Service contract to manage the custody and disposal of different digital assets seized by the government.

Although these allegations are serious, they have yet to be substantiated in court, and no formal charges have been issued.

Rising Policymaker Attention

The LICK incident has caught the eye of policymakers, with Patrick Witt, the director of the White House Crypto Council, indicating that he is reviewing the situation following ZachXBT's findings. Reports from BitcoinTreasuries.NET highlight that U.S. authorities potentially control over 328,000 Bitcoin from various seizures, valued at around $30 billion.

Broader Implications for Solana’s Meme Coin Ecosystem

The fall of LICK is part of a disturbing trend within the Solana meme coin marketplace. Recent data shows that more than 98% of tokens launched on the Pump.fun platform display traits associated with rug pulls or typical pump-and-dump schemes. Analysts suggest that only a small percentage of tokens achieve even minor liquidity, with many being abandoned or declining significantly within just 25 minutes.

Recent incidents underline these concerns: in December, the AI token AVA saw a decline of more than 96% after it was discovered that 40% of its supply was being held by wallets connected to its deployer. Similarly, in January, the WhiteWhale memecoin lost roughly 60% of its market value in a matter of minutes when a major holder sold off a large portion, a move many traders labeled as a rug pull, despite subsequent partial recovery.