Hayden Davis, CEO of Kelsier and creator of the controversial LIBRA meme-coin, has admitted to being behind both the LIBRA and MELANIA tokens.
In an interview with Coffeezilla, he also revealed that his team used sniping techniques to acquire large amounts of both coins immediately after their contract addresses went live.
Davis has faced criticism over the rapid collapse of LIBRA, which initially gained traction after Argentina’s President Javier Milei endorsed it in a now-deleted tweet.
The endorsement led to a surge in investment, but after Milei distanced himself from the project, the token’s value plummeted by 95%. Despite concerns from investors, Davis insisted that the project was not a scam but rather a poorly executed plan that left him in control of a significant amount of funds.
The MELANIA Token Controversy
Davis also confirmed his involvement with the MELANIA memecoin, a token linked to former U.S. First Lady Melania Trump. Initially, he claimed his team did not profit from the token, but later admitted that funds were sold, distinguishing between selling liquidations and swapping liquidity.
The MELANIA token launched with a $2.1 billion market cap on January 20 but has since dropped to $625 million. Davis claimed that his team was not the biggest sniper involved in the project, implying that other entities made significant profits from the token’s early trading.
$5 Million Refund to Dave Portnoy Raises Questions
Another major development in the LIBRA controversy is Davis’ decision to refund $5 million to Barstool Sports founder Dave Portnoy, who lost money on the token. Portnoy revealed that he had known about LIBRA weeks before its launch and purchased tokens shortly after Milei’s endorsement.
The refund has raised concerns about insider trading, as it suggests that some investors received preferential treatment while others suffered losses. Davis dismissed these accusations, arguing that early access and advantages are common in both crypto and traditional business ventures.
Davis’ statements have fueled debate over fairness in the crypto industry. While he downplayed the idea of insider trading, critics argue that the handling of LIBRA and MELANIA reflects the broader issues within the memecoin space, where a small group of insiders often benefit at the expense of regular investors.