Memecoin LICK Plummets 97% After Launch by Alleged US Crypto Thief

Edgen Crypto

·Jan 28 2026, 10:08

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Key Takeaways

A Solana memecoin named LICK, linked to a wallet allegedly involved in stealing seized US government crypto, collapsed 97% shortly after its debut on the Pump.fun launchpad. The event highlights extreme risks in the memecoin market, particularly concerning insider manipulation and token distribution.

A memecoin named LICK crashed 97% within its first day, with its market capitalization falling from a peak of $915,000 to under $25,000.
The token's deployer controlled 40% of the total supply at launch, a concentration that blockchain analysts identify as a major red flag for a potential "rug pull."
The wallet is linked to an alleged theft of millions in US government-seized crypto, a matter the US Marshals Service confirmed is under investigation.

LICK Memecoin Collapses 97% After Pump.fun Launch

A Solana-based memecoin called John Daghita (LICK) lost 97% of its value within 24 hours of its launch on the Pump.fun platform. The token briefly achieved a market capitalization of approximately $915,000 before plummeting to a value below $25,000. Onchain data shows the token's deployer address executed four acquisitions while the market capitalization was still below $21,000, preceding the sharp price increase and subsequent crash.

Deployer Held 40% of Supply, Linked to Government Crypto Theft

The token's rapid collapse is attributed to its concentrated ownership structure. Blockchain data platform Bubblemaps reported that the LICK deployer held 40% of the total token supply at launch. Such a high concentration is a significant warning sign for investors, as it enables insiders to manipulate the price or remove liquidity, causing the token's value to disintegrate in a maneuver known as a "rug pull."

This incident gained wider attention due to the wallet's alleged connections to a major crypto theft. Blockchain investigator ZachXBT traced wallets associated with John Daghita, which are believed to hold tens of millions of dollars in assets seized by the US government. A spokesperson for the US Marshals Service confirmed that an investigation into the matter is underway but declined to provide additional details.