A Solana-based memecoin launched by a wallet linked by blockchain investigators to an alleged theft of US government-controlled cryptocurrency has collapsed shortly after debut, renewing concerns over memecoin launch practices and onchain token distribution risks. The token, called John Daghita (LICK), was created via the Pump.fun launchpad and lost roughly 97% of its value within its first day of trading, according to onchain data.
LICK briefly surged to a market capitalization of around $915,000 before rapidly falling below $25,000. Data from Pump.fun shows that ahead of the rally, the token’s deployer address accumulated LICK through four early acquisitions while the market cap was still under $21,000, raising questions about insider activity prior to the price spike.
Blockchain investigator ZachXBT said he traced wallets connected to John Daghita holding tens of millions of dollars in cryptocurrency believed to be linked to assets seized by the US government in 2024 and 2025. A spokesperson for the US Marshals Service later confirmed that the matter is under investigation, though no further details were provided.
ZachXBT further alleged that Daghita, the son of Command Services & Support president Dean Daghita, may have gained unauthorized access to wallets managed by the US government. While the claims have not been formally proven, they have intensified scrutiny around the origins of funds associated with the token’s launch.
Supply Concentration Fuels Rug Pull Concerns
Additional red flags emerged around the token’s distribution. Blockchain analytics platform Bubblemaps reported that the deployer of LICK controlled 40% of the total supply at launch, a level of concentration widely viewed as risky in early-stage token projects. Bubblemaps publicly claimed that such a distribution structure increases the likelihood of coordinated selling or liquidity removal.
High supply concentration across a small number of wallets is often associated with sniping behavior or rug pulls, where insiders exit positions en masse, triggering sharp price collapses and leaving retail traders exposed. The LICK crash has drawn comparisons to other high-profile memecoin failures this year.
One of the most notable examples was the Wolf of Wall Street-inspired WOLF token, which plunged 99% within hours of launch on March 16, wiping out nearly $42 million in market capitalization. That project was launched by Hayden Davis, co-creator of the Official Melania Meme and the Libra token, who reportedly controlled 80% of WOLF’s genesis supply, underscoring how extreme token concentration continues to be a persistent risk in the memecoin market.
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