January 28 News, an investigation involving the US government seizing crypto assets has once again brought the risks of “Meme Coins” to the forefront. Blockchain investigators discovered a wallet suspected of being linked to stolen assets controlled by the US government, which recently issued a Meme coin called John Daghita (LICK) on the Solana chain. However, the token’s value rapidly plummeted after launch, sparking strong market skepticism.
On-chain data shows that LICK was created on the Pump.fun platform, and its price dropped by approximately 97% on the first day of trading. The token’s market cap briefly surged to around $915,000 before quickly falling below $25,000. Further investigation revealed that prior to the price surge, the deployment address had made multiple early acquisitions when the overall market cap was still very low.
Noted on-chain investigator ZachXBT pointed out that the wallet associated with John Daghita holds tens of millions of dollars in crypto assets, which may originate from funds seized by the US government between 2024 and 2025. The US Marshals Service later confirmed that the matter is under investigation but did not disclose further details.
According to ZachXBT, John Daghita is alleged to be the son of Dean Daghita, President of Command Services & Support (CMDSS), and is suspected of accessing and using a wallet address managed by the US government without authorization. These allegations are still under verification.
Data from the blockchain visualization platform Bubblemaps further heightens market concerns. The data shows that approximately 40% of the total token supply of LICK was concentrated in a single related address at the time of issuance. Such a highly centralized distribution structure is often seen as a high-risk signal in meme coin projects, which can easily trigger coordinated sell-offs or rapid “exit scams.”
Bubblemaps’ analysis indicates that high token concentration often means that internal addresses have decisive influence over the price. Once liquidity is drained, ordinary participants face significant losses. Similar incidents have occurred before, such as in March 2025, when a meme coin called WOLF plummeted 99% within hours, with a market cap evaporating over $40 million.
The rapid collapse of LICK once again reminds the market that, in an environment with low barriers to issuance, the token distribution structure and wallet backgrounds are often more worth cautioning against than the concept narrative itself.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
USD1 supply grew by $1.1 billion from the end of January, with the Solana chain growing by $720 million
Gate News reported on March 27 that, according to Yu Jin monitoring, the supply of the USD1 stablecoin has increased from $3.3 billion to $4.4 billion since certain CEX-related activities began at the end of January, an increase of $1.1 billion. The main growth came from the Solana chain, where its supply increased from $160 million to $880 million, an increase of $720 million. The remaining $380 million increment is distributed across the BNB Chain and the Ethereum network. Currently, USD1 is mainly distributed on the aforementioned three blockchains.
GateNews12m ago
USDC Treasury has minted an additional 250 million USDC on the Solana blockchain.
BlockBeats news, on March 27, according to Whale Alert monitoring, USDC Treasury minted an additional 250 million USDC on the Solana chain.
BlockBeatNews1h ago
Solana CRASHES 4.58% – Thai Traders Panic!
The latest update from Bitkub indicates that Solana experienced a decline of approximately 4.5 percent within a single day. During this period, the asset traded within a defined high-to-low range, reflecting active market movement and intraday fluctuations. Despite the price drop, trading volume
Coinfomania5h ago
In the past 24 hours, the entire network experienced liquidations of $214 million, with long positions accounting for over 80%.
Gate News reports, on March 27, according to CoinAnk data, the total liquidation across the network in the past 24 hours was $214 million, with long positions liquidated at approximately $178 million and short positions liquidated at about $36.52 million. By cryptocurrency type, Bitcoin liquidations were approximately $81.21 million, Ethereum liquidations were about $38.67 million, and SOL liquidations were around $10.53 million.
GateNews5h ago
A certain whale unstaked 170,000 SOL within 24 hours and deposited it into a certain CEX, valued at approximately 14.85 million USD.
Gate News reports that on March 27, according to Onchain Lens monitoring, a certain whale unstaked 170,000 SOL (worth approximately $14.85 million) and deposited it into a certain CEX within the past 24 hours. This whale currently still has 457,937 SOL (worth approximately $38.9 million) staked.
GateNews6h ago
