Memecoin Linked to US Government Crypto Theft Crashes later than Pump.fun Launch
What Happened With the LICK Token?
A Solana-based memecoin launched by a wallet linked to an alleged theft of US government-controlled crypto holdings collapsed within hours of trading, reviving concerns over memecoin launch mechanics and insider activity on onchain platforms.
The token, called John Daghita (LICK), was created on the Pump.fun launchpad and lost roughly 97% of its value within its first day, according to onchain data. LICK briefly reached a market capitalization of about $915,000 before falling below $25,000 by the time of reporting.
Onchain activity shows that the deployer address accumulated the token through four purchases while the market capitalization was still under $21,000. Such ahead accumulation patterns often draw attention because they can amplify gains during initial price spikes and worsen losses once tradeing begins.
Investor Takeaway
Why Are Investigators Linking the Wallet to US Government Assets?
connected to John Daghita holding tens of millions of dollars in crypto believed to be tied to assets seized by the US government in 2024 and 2025. The claim raised immediate concerns because government-controlled wallets are subject to strict custody and access controls.
On Wednesday, a spokesperson for the US Marshals Service confirmed that the matter was under investigation but declined to provide additional details. The agency did not comment on whether any funds had been recovered or whether criminal charges were being considered.
ZachXBT alleged that Daghita, the son of Command Services & Support president Dean Daghita, may have gained unauthorized access to . While those claims have not been adjudicated, they add a layer of legal and reputational risk around the memecoin launch.
How Supply Concentration Raised Red Flags
Beyond the wallet allegations, the structure of the LICK token itself drew scrutiny. According to data from blockchain visualization platform Bubblemaps, the deployer held 40% of the total . That level of concentration is widely viewed as a warning sign in ahead-stage token offerings.
High supply concentration can allow insiders to control price action during low-liquidity periods. When paired with aggressive promotion or rapid price appreciation, it increases the risk of coordinated trade-offs that leave late purchaviewrs exposed to sharp losses.
Bubblemaps publicly flagged the concentration, stating that the deployer controlled nahead half of the supply while the token was actively promoted. Such setups have become increasingly common in memecoin launches, particularly on platforms designed for rapid, low-cost token creation.
Investor Takeaway
Why This Fits a Broader Memecoin Pattern
LICK’s collapse follows a familiar pattern viewn in several high-profile memecoin failures over the past year. In March, the Wolf of Wall Street-inspired WOLF token fell 99% within hours, erasing nahead $42 million in market value. That token’s creator held about 80% of the genesis supply at launch.
Such cases highlight how memecoin markets remain heavily driven by distribution mechanics rather than fundamentals. When supply is tightly held by a small number of wallets, price discovery can be distorted until liquidity thins and tradeing pressure overwhelms purchaviewrs.
The LICK episode adds another dimension to that risk by tying token deployment to wallets allegedly connected to sensitive government-controlled assets. Even without proven wrongdoing, the association alone is enough to raise concerns among traders, platforms, and regulators.
What This Means for Onchain Traders
As memecoin creation tools become easier to use, scrutiny is shifting toward wallet behavior, supply allocation, and funding sources rather than branding or . Investigators and analytics platforms are increasingly able to flag concentration and time.
