Despite being pursued by Interpol for prior cryptocurrency frauds, Hayden Davies keeps introducing memecoins that are marred by insider trading activity.
Before the coin’s 99% collapse, the Libra (LIBRA) token’s inventor introduced another memecoin that had some of the same alarming onchain trends that suggested substantial insider trading activity.
A new Solana-based memecoin with an insider supply of more than 80% has been introduced by Hayden Davis, the co-creator of the Libra token and the Official Melania Meme (MELANIA).
On March 8, Davis introduced the Wolf (WOLF) memecoin, speculating that Wall Street mogul Jordan Belfort will introduce his own token.
The market value of the cryptocurrency peaked at $42 million. However, according to a March 15 X post by Bubblemaps, 82% of the WOLF token’s supply was packaged under the same entity. The article stated: “The bubble map revealed something strange — $WOLF had the same pattern as $HOOD, a token launched by Hayden Davis.” Was he also responsible for this one?
The blockchain analytics software showed that transactions from 17 distinct addresses traced back to Davis’s address “OxcEAe.”
“He moved money through 17 addresses and 2 chains to fund these wallets months before $LIBRA and $WOLF launched,” Bubblemaps continued.
According to Dexscreener statistics, the Wolf memecoin dropped more than 99% of its value in only two days, from its highest market capitalization of $42.9 million on March 8 at 4:00 am UTC to roughly $570,000 at the time of writing.
Weeks after the collapse of the Libra token, in which eight insider wallets cashed out $107 million in liquidity, causing a $4 billion market value wipeout in a matter of hours, Davies has launched a new currency.
After endorsing the Libra currency, Argentine President Javier Milei faced the possibility of being impeached, turning the token into a political issue.
Citing a “procedural risk” if Davis remained free, Argentine attorney Gregorio Dalbon has requested that an Interpol Red Notice be issued for Davis. This is because Davis might have access to large sums of money that would enable him to either escape the United States or go into hiding.
Related: In memecoin circles, the Milei-endorsed Libra cryptocurrency was “open secret” – Jupiter
According to Anastasija Plotnikova, co-founder and CEO of blockchain regulation company Fideum, memecoins are going against the core decentralized philosophy of cryptocurrency and are being utilized more and more to take advantage of individual investors as the number of rug pulls rises.
“Insider rings, pump-and-dump schemes, and sniper groups have replaced the organic, collectible nature of original memecoins, creating an unhealthy playing field,” Plotnikova told Cointelegraph, describing the evolution of memecoins from community-driven social experiments into a chaotic landscape dominated by value extraction from retail investors.
Related: Under the current SEC leadership, approvals of TRUMP, DOGE, and BONK ETFs are “more likely.”
Additionally, investors will have to choose between memecoins that are “not only unethical but also clearly illegal, with case law to support enforcement” and “outright fraudulent activities” like rug pulls.
“In my opinion, law enforcement agencies should have a firm grasp on these activities,” she said.
Regulators in the US are become more conscious of the rise in memecoin frauds.
According to Cointelegraph on March 6, a politician from New York submitted a measure that would create criminal sanctions designed especially to stop cryptocurrency fraud and shield investors from rug pulls.
The plan would specifically target dishonest acts related to cryptocurrencies by creating new criminal penalties for actions involving “virtual token fraud.”
Magazine: The celebrity pricing list of Caitlyn Jenner’s memecoin “mastermind” was released
