The creator of the Libra (LIBRA) token has launched another memecoin with some of the same concerning onchain patterns that pointed to significant insider trading activity ahead of the coin’s 99% collapse.
Hayden Davis, the co-creator of the Official Melania Meme (MELANIA) and the Libra token, has launched a new Solana-based memecoin with an over 80% insider supply.
Davis launched the Wolf (WOLF) memecoin on March 8, banking on rumors of Jordan Belfort, known as the Wolf of Wall Street, launching his own token.
The token reached a peak $42 million market cap. However, 82% of the WOLF token’s supply was bundled under the same entity, according to a March 15 X post by Bubblemaps, which wrote:
“The bubble map revealed something strange — $WOLF had the same pattern as $HOOD, a token launched by Hayden Davis. Was he behind this one too?”
Source: Bubblemaps
The blockchain analytics platform revealed transfers across 17 different addresses stemming back to address “OxcEAe” owned by Davis.
“He funded these wallets months before $LIBRA and $WOLF launched, moving money through 17 addresses and 2 chains,” Bubblemaps added.
Source: Bubblemaps
The Wolf memecoin lost over 99% of its value within two days, from the peak $42.9 million market capitalization on March 8 at 4:00 am UTC to just $570,000 by publication time, Dexscreener data shows.
WOLF/SOL, market cap, 1-hour chart. Source: Dexscreener
Davies’ latest token launch comes weeks after the Libra token’s collapse, where eight insider wallets cashed out $107 million in liquidity, leading to a $4 billion market cap wipeout within hours.
The Libra token turned into a political issue, with Argentine President Javier Milei risking impeachment after his endorsement of the Libra coin.
Argentine lawyer Gregorio Dalbon has asked for an Interpol Red Notice to be issued for Davis, citing a “procedural risk” if Davis remained free as he could have access to vast amounts of money that would allow him to either flee the US or go into hiding.
Related: Milei-endorsed Libra token was ‘open secret’ in memecoin circles — Jupiter
Memecoins are turning into “retail value extraction tools”
Memecoins are turning against crypto’s fundamental ethos of decentralization, becoming increasingly used to exploit retail investors amid the growing number of rug pulls, according to Anastasija Plotnikova, co-founder and CEO of blockchain regulatory firm Fideum.
“Memecoins have evolved from community-driven social experiments into a chaotic landscape dominated by value extraction from retail investors,” Plotnikova told Cointelegraph, adding:
“Insider rings, pump-and-dump schemes, and sniper groups have replaced the organic, collectible nature of original memecoins, creating an unhealthy playing field.”
Related: TRUMP, DOGE, BONK ETF approvals ‘more likely’ under new SEC leadership
Investors will also need to distinguish between memecoins that can be seen as genuine “collectibles” and “outright fraudulent activities” like rug pulls which are “not only unethical but also clearly illegal, with case law to support enforcement.”
“In my view, these activities should fall firmly within the jurisdiction of law enforcement agencies,” she added.
United States regulators are becoming increasingly aware of the growing memecoin scams.
A New York lawmaker introduced a bill that would establish criminal penalties specifically aimed at preventing cryptocurrency fraud and protecting investors from rug pulls, Cointelegraph reported on March 6.
Under the proposal, new criminal charges would be created for offenses involving “virtual token fraud,” explicitly targeting deceptive practices associated with cryptocurrencies.
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