The creator of the Libra token launched a new memecoin Wolf, but its value sharply dropped by 99% soon after, raising investor concerns.
Launch of New Memecoin Wolf
Hayden Davis, co-creator of the Libra and Official Melania Meme tokens, introduced a new Solana-based memecoin called Wolf. The token's development was surrounded by rumors about Jordan Belfort, known as the 'Wolf of Wall Street', launching his own token. However, 82% of the Wolf memecoin's supply was controlled by a single entity, raising questions about the fairness of such concentration.
Analysis from Bubblemaps Platform
Bubblemaps, a blockchain analytics platform, discovered anomalies in the token distribution of Wolf. Funds were transferred through 17 different addresses long before the launch of Wolf and Libra. This pattern was similar to the HOOD token, leading to suspicions of possible insider trading.
Regulatory Response
The market is experiencing a surge in memecoin scams, attracting the attention of US regulators. Measures include a new bill introduced in New York, proposing criminal penalties for cryptocurrency fraud to protect investors from schemes like pump-and-dump.
The launch of the Wolf token highlighted the high risks associated with the memecoin market for small investors, where insiders often gain advantages at the expense of others.
