Creator of Controversial LIBRA Memecoin Introduced MELANIA, Says He Sniped Both Tokens

Kelsier CEO Hayden Davis, the mastermind behind the controversial LIBRA memecoin, revealed that he was also behind the MELANIA memecoin, a token linked to U.S. First Lady Melania Trump. Davis’s team reportedly sniped both tokens as soon as the contract addresses went live.

LIBRA was launched on Friday, sparking a now-deleted tweet of support from Argentina’s President Javier Milei, who claimed the token would support small and mid-sized businesses in the country. The backtracking on the project led to a 95% plunge in the token’s value.

The Art of Sniping

Sniping is the practice of using bots to buy memecoins seconds after the smart contract goes live. Wallets that participate in sniping often end up with the majority of the profit.

In an interview with crypto scam hunter Coffeezilla, Davis insisted that the token was not a “rug pull.” He claimed, “It’s just a plan gone miserably wrong with $100 million sitting in an account that I’m the custodian of.”

Profit Made from MELANIA Liquidity

It appears that this is not Davis’s first rodeo. He was also involved in the launch of the MELANIA memecoin, which was linked to U.S. First Lady Melania Trump.

“I’m happy to share the truth,” Davis said when questioned about MELANIA. “You’re asking a question that’s going to put me in a lot of danger, but I’ll answer it. I was part of it. I think the team did want to snipe it because how big the snipe was on Trump’s [memecoin]. We definitely weren’t the big sniper. There was no money made from the MELANIA team, we didn’t take any liquidity out, zero.”

Davis appeared to contradict himself shortly after being confronted with on-chain data: “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.”

MELANIA is currently trading at a $625 million market cap after debuting at $2.1 billion on January 20.

Refunds… for Insiders?

The controversy surrounding LIBRA continued as Davis sent Barstool Sports founder Dave Portnoy a $5 million refund after Portnoy lost money on LIBRA.

In a conversation with Coffeezilla, Portnoy said that he knew about the project for weeks before the launch and that he purchased the tokens 10 minutes after Milei’s tweet.

That Portnoy knew LIBRA so early and that he received a refund afterwards raises the specter of insider trading. However, Davis dismissed that idea.

“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.

“[It’s] similar to any other business in the world. So I think that’s a bit of bullshit and that’s just crypto people that are angry because there’s an unfair advantage.”

Conclusion

The controversy surrounding Kelsier’s LIBRA memecoin and its potential connections to the MELANIA memecoin has raised several red flags. The practice of sniping and the potential for insider trading have sparked concerns about the transparency and integrity of the market.

As the industry continues to evolve, it is essential for investors and market participants to be aware of the potential risks and pitfalls associated with memecoins and other cryptographic assets.

FAQs

1. What is sniping in the context of memecoins? Sniping is the practice of using bots to buy memecoins seconds after the smart contract goes live, with the goal of profiting from the initial market hype.
2. How did Davis’s team benefit from the MELANIA memecoin? Davis’s team reportedly sniped the MELANIA memecoin, which led to a significant profit.
3. Is the idea of insiders in the context of memecoins considered “bullshit”? According to Davis, the idea of insiders is often overblown, and the people who benefit from memecoins are typically those who are involved in the deal structuring process.
4. What is the current market capitalization of MELANIA? MELANIA is currently trading at a $625 million market cap after debuting at $2.1 billion on January 20.
5. Did Davis receive a refund from Portnoy after Portnoy lost money on LIBRA? Yes, Davis sent Portnoy a $5 million refund after Portnoy lost money on LIBRA.