In a shocking revelation, the controversy surrounding the LIBRA memecoin has taken a new turn as its creator, Kelsier CEO Hayden Davis, admitted to also being behind the MELANIA token launch. The confession came during an interview with crypto scam hunter Coffeezilla, where Davis disclosed that his team had sniped both token contracts as soon as they went live, raising serious concerns about insider trading and unfair advantages in the memecoin space.
The LIBRA Debacle
The LIBRA memecoin, which was promoted as a means to support small and mid-sized businesses in Argentina, quickly unraveled after initial endorsements from President Javier Milei were retracted. This led to a staggering 95% plunge in the token’s value, leaving many investors reeling from their losses. Davis insisted that LIBRA was not a rug pull but rather a “plan gone miseribly wrong.”
Sniping Contracts for Profit
The practice of sniping, where bots are used to buy up tokens mere seconds after the smart contract goes live, has become a controversial tactic in the memecoin world. Those who successfully snipe often end up with the lion’s share of the profits. Davis admitted that his team engaged in this practice for both LIBRA and MELANIA, though he claimed they weren’t the biggest snipers.
“We definitely weren’t the big sniper. There was no money made from the MELANIA team, we didn’t take any liquidity out, zero.”
– Hayden Davis, Kelsier CEO
However, when confronted with on-chain data, Davis backtracked, stating that while they didn’t swap liquidity, he couldn’t say there was no money sold through liquidations. This contradictory statement has only fueled suspicions of insider trading and manipulation.
Refunds for Insiders
As the LIBRA fallout continued, it was revealed that Barstool Sports founder Dave Portnoy, who had promoted the token to his followers, received a $5 million refund from Davis after losing money on the memecoin. This preferential treatment for an insider has raised eyebrows, especially considering Portnoy knew about the project weeks before its launch.
Davis dismissed allegations of insider trading, arguing that those in the know always benefit in the memecoin world, just like in any other business. He claimed that outsiders who are angry about unfair advantages are just disgruntled crypto people.
The MELANIA Connection
The revelation that Davis was also behind the MELANIA memecoin, which is linked to U.S. First Lady Melania Trump, has only deepened the web of controversy. Despite debuting at a $2.1 billion market cap, the token is now trading at just $625 million, leaving many investors holding the bag.
Davis claimed that his team didn’t take any liquidity out of MELANIA, but the admission of sniping and selling liquidations has cast doubt on the integrity of the project.
The Fallout
As the dust settles on the LIBRA and MELANIA debacles, investors are left grappling with the harsh realities of the memecoin space. The prevalence of insider trading, sniping, and unfair advantages has eroded trust in these projects, leaving many questioning the legitimacy of the entire ecosystem.
The refunding of insiders like Portnoy while everyday investors suffer losses has only added fuel to the fire, highlighting the inequities that exist in this unregulated market. As regulators and lawmakers start to take notice, the future of memecoins hangs in the balance.
For now, the cautionary tale of LIBRA and MELANIA serves as a stark reminder of the risks involved in chasing the latest memecoin craze. As the saying goes, if something seems too good to be true, it probably is. Investors would be wise to approach these projects with a healthy dose of skepticism and to always do their own research before parting with their hard-earned money.
The crypto community awaits further developments in this unfolding saga, with many calling for greater transparency and accountability in the memecoin space. Only time will tell if these controversies will lead to meaningful change or if history is doomed to repeat itself in the relentless pursuit of the next big memecoin windfall.
