In the ever-evolving world of cryptocurrency, Hayden Davis, the CEO of Kelsier, has stirred the pot once again by revealing his involvement in the launch of the MELANIA memecoin, shortly after his controversial LIBRA token. In an eye-opening discussion, Davis disclosed that his team executed a sniping strategy for both tokens as soon as their contract addresses became active.
The Rise and Fall of LIBRA
LIBRA made its debut on a Friday, catching the attention of the crypto community and even receiving a now-deleted endorsement from Argentina’s President Javier Milei. The president suggested that LIBRA could bolster small and mid-sized businesses in the country, but this support quickly turned sour. Following Milei’s retraction, the value of LIBRA plummeted by an astonishing 95%.
Sniping Explained
Sniping, a term used in crypto trading, refers to the practice of using automated bots to purchase newly launched tokens within seconds of their availability. This strategy often allows these wallets to secure a significant share of the profits. Despite the tumultuous launch of LIBRA, Davis asserted during an interview with crypto investigator Coffeezilla that the project was “not a rug pull,” but rather a venture that had gone “miserably wrong,” leaving $100 million in an account he manages.
The Launch of MELANIA
In an intriguing twist, Davis revealed that he also played a role in launching the MELANIA memecoin, which is tied to U.S. First Lady Melania Trump. He candidly stated, “I’m happy to share the truth. You’re asking a question that’s going to put me in a lot of danger, but I’ll answer it.” Davis acknowledged that his team was interested in sniping MELANIA due to the lucrative returns observed with Trump’s memecoin. However, he insisted that “no money was made from the MELANIA team,” emphasizing that they did not withdraw any liquidity from the project.
Contradictory Statements
As Davis faced scrutiny regarding his statements, he appeared to contradict himself when confronted with on-chain data. He clarified, “We didn’t swap liquidity [but] I didn’t say there was no money sold. There’s a difference between swapping liquidity and selling liquidations.” Currently, MELANIA boasts a market cap of $625 million after initially launching at a staggering $2.1 billion on January 20.
Refunds and Allegations of Insider Trading
The controversy surrounding LIBRA continued to unfold as Davis issued a $5 million refund to Barstool Sports founder Dave Portnoy, who had incurred losses from his investment in LIBRA. In a conversation with Coffeezilla, Portnoy revealed that he had been aware of the project weeks before its launch and purchased tokens just ten minutes after Milei’s endorsement.
This knowledge and subsequent refund raised questions about potential insider trading practices. Davis, however, dismissed these allegations, stating, “The idea of insiders is always bullshit because every memecoin I’ve ever known or invested in or been a part of, the people that benefit are the people that know … people that structure the deal.” He likened this to any conventional business, arguing that the notion of insider trading is simply a narrative pushed by disgruntled crypto enthusiasts.
As the saga continues, CoinDesk reached out to both Davis and Portnoy for further comments, but responses were not available by the time of publication. The unfolding story of LIBRA and MELANIA raises significant questions about transparency, trading ethics, and the future of memecoins in the cryptocurrency landscape.
