Hayden Davis, founder of the controversial Libra (LIBRA) memecoin project, claimed that complaints about memecoin trading stem from investors frustrated over not being part of insider deals.
Davis made the remarks during an interview with YouTube investigator Stephen Findeisen, better known as “Coffeezilla,” where he defended the Libra token’s collapse as a failure rather than a scam.
“The vast majority of people betting on memecoins, especially at the beginning — and I think there’s a separate conversation — like, that is the game for everyone. And people that get mad are the people that aren’t insiders,” Davis said. He added:
“All the bitching on socials is all the people that don’t get into the deals. You’ll never hear them bitch if they’re in the deal.”
Pressed on the ethics of insider advantages in memecoin trading, Davis questioned what alternative path exists.
“So what do you do then? You don’t launch the project? How do you make money then?” he asked, prompting Coffeezilla to tilt his head in apparent disbelief.
Investigator Coffeezilla documents his discussion with Libra founder Hayden Davis. Source: Coffeezilla
The Libra token initially gained traction after receiving social media backing from Argentine President Javier Milei, whose now-deleted post on X helped propel the token’s market capitalization to over $4 billion before it crashed. At least eight insider wallets linked to the Libra team reportedly cashed out significant funds before the collapse.
The fallout has turned into a political debacle for Milei, with some Argentine lawmakers calling for his impeachment.
Related: Dave Portnoy claims he returned 6 million Libra tokens to founder
Insider activities in political memecoins
Political memecoins have gained momentum in recent months, spurred by US President Donald Trump’s Official Trump (TRUMP) and Melania Meme (MELANIA) tokens. More political figures have since jumped on the trend, including the Central African Republic, whose president recently endorsed a memecoin. These tokens have suffered sharp losses.
Blockchain analytics firm Bubblemaps reported that wallets linked to the sniping of the MELANIA token were also involved in the launch of the LIBRA token. The same wallet reportedly sniped LIBRA, generating $6 million in profit.
Common address in MELANIA and LIBRA snipers. Source: Bubblemaps
Coffeezilla challenged Davis on whether it was unfair for those behind a coin’s launch to engage in sniping — the practice of using automated bots to gain an early and profitable position in a token.
“So, I would say no,” Davis replied.
“I’m not saying it always should happen, but I’m saying a lot of times it’s to protect. And if there’s enough volume, take some off so that people can have a chance to pump the chart back up. Because with memecoins, they go up and down so fast these projects can get killed in two days. The only hope is that you have enough of a treasury to go and try and beat the snipers,” he added.
Related: CAR’s wild memecoin ride from $600M to $35M, explained
Political memecoins are leaving a sour taste in the community
Many in the cryptocurrency community mocked Davis’ response, and some industry members voiced strong disapproval.
“This one tilted me. His base premise is ‘crypto only exists to extract money.’ Also shows he has never used a single real crypto project,” Andre Cronje, Sonic Labs co-founder, said on X.
While some believe investors should take personal responsibility for their decisions, others argue that the broader impact of memecoins is harming the industry.
“At this point, if you get ‘rug pulled,’ whether by Trump, Milei, whoever, it’s not an indictment of crypto. It’s an indictment of you,” president of The ETF Store Nate Geraci said.
Adding to the concerns, Samczsun, founder of security group SEAL911, warned that memecoins are fueling an unsustainable cycle.
“Even if the original vision of memecoins was good, it’s hard to believe anyone can argue in good faith that the current meta is anything but negative sum. Memecoins are a wildfire burning through our industry, and if we don’t want to be left with only ashes then it’s time to act,” he said on X.
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