Wolf of Wall Street memecoin crashes 99% amid insider trading claims
The Wolf (CRYPTO:WOLF) memecoin, launched on March 8 by Hayden Davis, co-creator of the controversial LIBRA (CRYPTO:LIBRA) and MELANIA (CRYPTO:MELANIA) tokens, has collapsed by 99% within two days.
The token's market cap plummeted from $42.9 million to just $570,000, raising concerns about insider trading and manipulation.
Blockchain analytics platform Bubblemaps revealed that 82% of WOLF’s supply was controlled by a single entity.
Further investigations traced the token’s transactions across 17 addresses linked to Davis, who allegedly funded these wallets months before launching WOLF and LIBRA.
“The bubble map revealed something strange — $WOLF had the same pattern as $HOOD, a token launched by Hayden Davis,” Bubblemaps stated.
This collapse mirrors the earlier downfall of the Libra token, where eight insider wallets withdrew $107 million in liquidity, wiping out a $4 billion market cap in hours.
The Libra incident also sparked political controversy after Argentine President Javier Milei endorsed the token, leading to calls for his impeachment.
Davis, already wanted by Interpol for his involvement in previous crypto scams, has faced growing scrutiny.
Argentine lawyer Gregorio Dalbon has requested an Interpol Red Notice against Davis, citing procedural risks due to his access to substantial funds.
The broader issue of memecoins as “retail value extraction tools” is gaining regulatory attention.
Anastasija Plotnikova, CEO of blockchain regulatory firm Fideum, criticised the shift in memecoin culture.
“Insider rings, pump-and-dump schemes, and sniper groups have replaced the organic nature of original memecoins,” she said.
Plotnikova emphasised that such activities are not only unethical but also illegal
U.S. lawmakers are responding with proposed legislation targeting cryptocurrency fraud and rug pulls.
A New York bill aims to establish criminal penalties for deceptive practices in virtual token markets.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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