Hunter Biden Blames Market Maker for LAPTOP Meme Coin Collapse
Key Summary
Hunter Biden attributes the collapse of the LAPTOP meme coin to thin liquidity and market-maker activity, contradicting earlier rumors of a rug pull. A forensic review found that the token's extreme rise and fall were caused by an imbalance in trading activity, with the founder wallet remaining untouched. The report has sparked a divided reaction among traders and lawyers.
Background
Hunter Biden has said that a forensic review of the LAPTOP launch found the token's extreme rise and collapse were caused by unusually thin liquidity and later market-maker activity, while on-chain records showed the founders had not sold their allocation. The account challenges the earlier perception of a rug pull, but the market makers remain unnamed and the investigation was commissioned by the project team.
Market Analysis
A forensic review by Groom Lake found that a market maker given $500,000 deployed only about $5,200 into the initial pool, creating a market where just $6 of buying could move the price 5%, compared with about $7,400 of selling needed for the same move. The review also found that the liquidity position linked to Market Maker 1 was withdrawn 84 seconds after the high, reducing cash available to sellers near the quoted price from about $16,157 to zero.
Founder Wallet
The report found that the wallet holding the 300 million LAPTOP founder allocation, equal to 30% of the original supply, made no outgoing token transfers through October 2. Biden also said his allocation is locked for six months and then vests over two years.
Market Reaction
The reaction to the new accounting remains divided, with some traders and lawyers calling for further investigation, while others have dismissed the explanation as a post-mortem for what still looked like a rug pull. A crypto consultant noted that the founder wallet claim can be checked on-chain but that the report was commissioned by Biden's team and the market makers have not publicly responded.