Manipulation Assumed to Control Liquidity
Hayden Davis, a self-proclaimed advisor and facilitator of the memecoin Libra (presumably similar to the team behind MELANIA), admitted that the team intentionally sniped the token at launch. This practice, using bots to quickly acquire a large portion of the initial supply, aimed to prevent other actors from destabilizing the project. Davis revealed that he controlled wallets containing over $100 million from the Argentine fiasco.
A Launch Marked by Volatility and Milei’s Abandonment
The memecoin Libra skyrocketed after Argentine President Javier Milei promoted it last Friday, reaching a market cap of several billion before collapsing when Milei withdrew his support. Davis stated in an interview with Coffeezilla that the team’s intention was to limit the damage caused by speculators:
If we can remove enough liquidity to control the snipers, we avoid the price drop from destroying the entire project.
An Admission That Sheds Light on Internal Practices of Memecoins
Davis also revealed a dark reality of the memecoin world: the pervasive presence of insider trading. He claimed that almost every memecoin launch involves influencers and savvy investors benefiting from privileged information. This was further amplified by Dave Portnoy, founder of Barstool Sports, who disclosed that Davis gave him 6 million Libra tokens with instructions not to discuss it publicly.
Portnoy refused the airdrop and invested $5 million from his personal fortune, only to lose it all in the crash. Davis reimbursed Portnoy in USDC and called it a mistake.
Involvement Extended to Other Memecoins, Including Melania Trump’s
Davis also admitted his involvement in the memecoin Melania, associated with the former First Lady, and confirmed that the team also sniped that token at launch, inspired by the scale of sniping in the Trump memecoin. Analysis from Bubblemaps revealed on-chain links between the wallets of the creators of the Melania memecoin and those involved in Libra, as well as connections between these wallets and Davis’ personal wallets.
An Attempt at Justification Amid Growing Accusations
Hayden Davis defends himself against accusations of orchestrating a scam:
Libra is not a rug pull, it is a plan that miserably failed with $100 million that I am keeping on deposit.
Faced with a wave of criticism and legal action in Argentina targeting President Javier Milei for fraud, Davis claims to desire following appropriate guidelines to manage these funds. He also announced an upcoming television interview with Milei, promising new revelations about the Libra case.
