Libra’s Controversial Launch
Hayden Davis, a co-founder of the short-lived memecoin Libra, admitted that wallets connected to the project engaged in “sniping” – using bots to buy the coin before its public launch. This tactic, common in crypto trading, aims to capitalize on the price increase expected when other investors jump in.
Davis’s Justification
Davis explained on the voidzilla YouTube channel that Libra used its own treasury to buy the coin, essentially front-running other buyers. He argued this was a defensive measure, not just to profit, but to prevent other, potentially malicious, snipers from gaining control. He stated that sniping is often used by memecoin projects to build a large enough market cap to withstand large sell-offs from whales (investors with significant holdings).
Libra’s Meteoric Rise and Fall
Libra, initially backed by Argentinan President Javier Milei, saw a spectacular, albeit short-lived, rise to a $4 billion market cap on launch day. However, it subsequently lost over 95% of its value, leading to accusations of rug pulls (developers abandoning the project) and insider trading against Davis and his team. Milei has since withdrawn his support.
Davis’s Defense and Current Situation
Davis denies any wrongdoing, calling the whole affair a “plan gone miserably wrong.” He claims the team still holds $100 million worth of Libra. Despite the accusations, he maintains that the sniping was a strategic move to protect the project’s survival.
