U.S. Origins Dominate Catastrophic Rugged Token Collapses, Bubblemaps Study Reveals

A recent analysis by blockchain analytics platform Bubblemaps has uncovered alarming trends in the cryptocurrency market, focusing on 38 high-risk tokens that experienced near-total value destruction due to wallet clustering. The study found that over half of these collapsed tokens originated in the United States, with Europe as a distant second, followed by India and other regions like Mexico, Canada, and Australia.

The value destruction was staggering: the least affected token dropped by –78%, while the vast majority plummeted between –97% and –100%, effectively rendering them worthless. Notable examples include MELANIA, CR7 Fake, FRIES, ZEUS, and U.S.-based tokens like MTGA, RONNIE, and FRENCH, which saw complete capital wipeouts. European tokens such as LILPUMP and GINNAN suffered similar fates.

Regardless of theme—whether celebrity-endorsed, meme-based, or politically motivated—all tokens exhibited identical patterns: rapid hype-driven rises, concentrated supply in few wallets, and catastrophic declines. Bubblemaps highlighted that wallet clustering, where multiple addresses are controlled by a single entity, enables market manipulation and sudden price crashes. The data underscores the risks of investing in tokens with opaque ownership and concentrated liquidity, urging investors to prioritize transparency and diversified holdings.