In a striking revelation that has sent shockwaves across the crypto community, LIBRA’s co-creator Hayden Davis has publicly acknowledged that wallets linked to the memecoin project engaged in ‘sniping’ tactics during its launch. The practice, often criticized for its ethical implications, involves using trading bots or scripts to buy up coins just as they hit the market, effectively jumping the queue ahead of major transactions and retail investors.
Appearing on the Voidzilla YouTube channel, Davis openly addressed the allegations of insider sniping, elaborating that the project maintains a separate treasury intended for such activities. “That money we consider ‘sniping’ is the project’s money,” Davis asserted, reframing the controversial practice as a defensive strategy to deter other snipers and protect the project from early market disruptions.
Davis explained that sniping the project’s own tokens was a calculated move to stabilize its market cap by absorbing large sell orders from high-stake investors. This tactic was meant to bolster the coin’s resilience and attract broader market confidence, although the plan evidently unraveled. Following a dramatic surge to a $4 billion market cap on launch day, LIBRA’s value plummeted by more than 95% in mere hours, leading to widespread accusations of a rug pull and insider trading.
Despite these allegations and the subsequent political fallout for high-profile backers like Argentina’s President Javier Milei, who has since distanced himself from the project, Davis maintains that the ordeal signifies a “plan gone miserably wrong.” With the team sitting on $100 million of the project’s capital, the co-creator insists there was no intention of defrauding investors.
The LIBRA saga serves as a cautionary tale within the cryptosphere, highlighting the intricate balance between strategic maneuvers and ethical considerations. As debates continue, Davis’s admissions will likely fuel ongoing discussions about regulatory measures and investor protections within the volatile world of cryptocurrency trading.
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*Disclaimer: This content is intended for informational purposes only and does not constitute financial advice. Please conduct thorough research before engaging in cryptocurrency investments.*
