A newly launched Solana-based meme token, LICK, crashed almost immediately after trading began, losing more than 97% of its value within hours.
The token, created on the Pump.fun launchpad and branded as “John Daghita,” briefly reached a market capitalization of about $915,000 before falling below $28,000.
Why It Fell
Blockchain analytics firm Bubblemaps revealed that the wallet deploying LICK controlled roughly 40% of the token supply, a level of concentration that often signals risk to investors. Early trading data showed the deployer made multiple purchases before the sudden surge and collapse.
Investigators have tied this wallet to an alleged theft of U.S. government-controlled crypto assets, though no charges have been filed. The claims come from blockchain researcher ZachXBT, who reported that the individual behind the token operating under the alias John Daghita may have accessed wallets holding tens of millions in government-seized crypto.
Wider Implications for Investors
- High risk in Pump.fun tokens: Most meme coins launched on the platform over 98% exhibit characteristics of pump-and-dump schemes, making them extremely volatile and risky.
- Concentrated supply danger: When a single wallet holds a large share of a token, price manipulation and liquidity issues become very likely.
- Regulatory attention: The White House Crypto Council is reviewing the claims, signaling that government oversight could increase for projects tied to seized or misappropriated assets.
Solana Meme Coin Ecosystem Shows Pattern of Rug Pulls
LICK is not an isolated case. Other Solana-based tokens, such as AVA and WhiteWhale, have experienced sudden crashes after large holders sold significant portions of supply, often within minutes of launch. Analysts warn that this pattern highlights the extreme volatility and speculative nature of meme coins, especially those with high supply concentration.
Investor Takeaway
While meme coins like LICK can offer short-term hype, the risk of total loss is very high, especially when deployed by a single, highly influential wallet. Investors should treat Pump.fun launches with extreme caution and focus on projects with transparent ownership, verified liquidity, and regulatory compliance.
