In a shocking revelation, Kelsier CEO Hayden Davis has admitted to creating and sniping both the LIBRA and MELANIA memecoins. This admission comes amid growing controversy over the LIBRA token’s 95% price crash.
Davis revealed these details in a recent interview with crypto investigator Coffeezilla. The LIBRA token initially gained attention through Argentina’s President Javier Milei’s support. However, this support was quickly withdrawn.
Understanding the Controversy
The LIBRA token launch raised several red flags. Davis’s team used sniping bots to purchase tokens immediately after the smart contract went live. This practice often leads to concentrated profits among early buyers.
Davis maintains LIBRA wasn’t a rug pull. He describes it as “a plan gone wrong” with $100 million in custody. This statement raises questions about fund management and investor protection in memecoin projects.
The MELANIA Connection
The MELANIA token shows a similar pattern. It dropped from a $2.1 billion debut to a $625 million market cap. Davis’s admission of involvement in both projects reveals a concerning trend in memecoin launches.
Market Implications
These revelations highlight several critical issues in the memecoin market:
- Increased scrutiny of token launches and their creators
- Questions about the legitimacy of celebrity-endorsed crypto projects
- Growing concerns about bot-driven token sniping
- Need for better investor protection mechanisms
The Insider Trading Question
The controversy deepened when Davis refunded $5 million to Dave Portnoy. Portnoy had prior knowledge of the project weeks before launch. This raises serious questions about insider trading in the memecoin space.
Davis’s dismissal of insider trading concerns as “bullshit” reflects a troubling attitude in the crypto space. He compares it to standard business practices, ignoring the regulatory implications.
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Looking Forward
These events may trigger stricter oversight of memecoin launches. Investors should exercise extreme caution with celebrity-endorsed tokens and be aware of sniping practices.
The crypto community needs better mechanisms to protect retail investors. This includes transparent launch processes and fair token distribution methods.
Tags: #Memecoins #CryptoScams #TokenLaunches #CryptoRegulation #InvestorProtection
Source: CoinDesk