Hayden Davis, known for creating the memecoins Libra (LIBRA) and Official Melania Meme (MELANIA), has launched a new token called Wolf (WOLF) that experienced a 99% crash in just 48 hours.
The memecoin generated great initial interest in the crypto sector, reaching a market capitalization peak of 42 million dollars. However, in just a few days, its value drastically reduced to only 477,000 dollars.
The suspicion of insider trading behind the memecoin Wolf
Launched on the Solana blockchain, Wolf had a highly unbalanced distribution, with over 80% of the total supply concentrated in wallets linked to insiders.
This dynamic has raised concerns in the crypto community, with some analysts highlighting similarities with other previous projects by Davis.
The project seemed to capitalize on the speculations surrounding a possible involvement of Jordan Belfort, known as “The Wolf of Wall Street”, in the cryptocurrency market.
This strategy drove the initial interest, contributing to the rapid increase in capitalization, followed by an equally sudden bear.
The analysis platform Bubblemaps published on X (formerly Twitter) a report on the anomalies related to the memecoin. In particular, an analysis of the transaction network highlighted a pattern similar to that of HOOD, another memecoin also created by Davis.
The investigations by Bubblemaps revealed that Davis had funded several wallets before the launch of Libra and Wolf, making transfers to 17 different addresses across two blockchains.
The main wallet identified in the operation, known as “OxcEAe”, was found to be directly connected to Davis.
Such movements suggest strategic planning before the token launch, raising suspicions of possible price manipulation maneuvers.
After Libra, a new crash for Davis
The launch of Wolf occurred a few weeks after the failure of Libra (LIBRA), another memecoin created by Davis, which had reached a capitalization of 4 billion dollars before collapsing.
In the case of Libra, wallets linked to insiders managed to cash in as much as 107 million dollars before the token’s value collapse.
The Libra project has also had repercussions in the political sphere: Javier Milei, president of Argentina, has faced accusations for publicly promoting the memecoin, with requests for impeachment against him.
The events related to Davis have attracted the interest of the legal authorities. The Argentine lawyer Gregorio Dalbon has urged the issuance of an Interpol Red Notice against Davis, believing that, if left free, he could escape thanks to the accumulated capital.
The recent operations confirm a concerning trend in the cryptocurrency market: many new memecoins no longer reflect the original idea of decentralization, but are turning into tools to extract value from retail investors.
According to Anastasija Plotnikova, CEO of Fideum, memecoins have evolved from simple community-driven initiatives to real financial schemes orchestrated by groups of insiders.
“Memecoins are moving away from their nature as cultural and collectible phenomena. Today, they are dominated by increasingly sophisticated pump-and-dump and rug pull schemes.”
The rug pull schemes, which consist of suddenly crashing the value of a token after a strong initial increase, are becoming more and more frequent.
Plotnikova states that these mechanisms are not only immoral, but openly illegal and that they should be prosecuted by the competent authorities.
The importance of regulation
The memecoin industry continues to attract investors in search of quick gains. However, without adequate regulations, the risk of fraud remains very high.
The recent events related to Davis’s projects demonstrate how suspicious fund movements and insider trading can compromise the reliability of these cryptocurrencies.
With the growing interest of global financial authorities, the crypto industry could soon face new restrictions and tighter controls in order to ensure greater transparency and security for investors.
