Hayden Davis, known for his involvement in several meme coin scams like LIBRA and MELANIA, has launched another token called WOLF, which has already experienced a massive collapse.
Hayden Davis, known for his involvement in several meme coin scams like LIBRA and MELANIA, has launched another token called WOLF, which has already experienced a massive collapse. The meme coin hit a market cap of $42 million on March 8 but lost over 99% of its value within two days, dropping to just $570,000 by publication.
Bubblemaps, a blockchain analytics firm, identified that 82% of WOLF’s supply was controlled by a single entity, a common red flag in fraudulent schemes. The firm’s investigation traced the movement of funds through 17 different wallets, all ultimately linked to an address owned by Davis. This pattern was strikingly similar to previous launches by Davis, including the HOOD token, further raising suspicions. WOLF had also gained attention due to its association with Jordan Belfort, the figure behind "The Wolf of Wall Street," with rumors suggesting he was planning to launch his own token.
However, as is common in pump-and-dump schemes, Davis allegedly orchestrated the liquidity pull once the token reached its peak value, leaving investors with worthless coins. This collapse follows the earlier failure of Davis’s Libra token, which also suffered a dramatic crash. After its market cap surged to $4.5 billion, the token lost nearly all of its value, plummeting to just $18 million. The fall of Libra had significant political ramifications, particularly in Argentina, where President Javier Milei's endorsement of the coin contributed to its brief success, leading to calls for his impeachment.
The continuing fallout from these meme coin collapses has raised serious concerns. Argentine lawyer Gregorio Dalbon has urged Interpol to issue a Red Notice for Davis, fearing that his access to large amounts of funds could allow him to evade justice. The overall pattern of insider trading and rug pulls is a growing problem in the meme coin space, with many questioning the ethics of such projects.
Anastasija Plotnikova, co-founder of blockchain regulatory firm Fideum, noted that meme coins have shifted from being community-driven experiments to tools for exploiting retail investors. She emphasized that practices like insider rings and pump-and-dump schemes now dominate the market, turning what was once a novelty into a dangerous field for investors.
Meanwhile, U.S. regulators are taking steps to address the issue. A recent bill proposed in New York aims to establish criminal penalties for crypto fraud, specifically targeting deceptive practices involving virtual tokens. As the meme coin market continues to attract attention, there’s growing pressure for stronger regulations to prevent such scams from harming investors.
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