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- Hayden Davis allegedly earned $12M sniping Kanye’s YZY memecoin.
- Blockchain firm Bubblemaps tracks Davis’ involvement in YZY token launch.
- Controversial crypto figure’s actions raise concerns over market manipulation.
Hayden Davis, a key figure behind the controversial LIBRA token, is now at the center of a new crypto scandal. According to blockchain analysis firm Bubblemaps, Davis earned a staggering $12 million by sniping Kanye West’s YZY memecoin shortly after its launch. Davis, who is also the CEO of Kelsier Ventures, has been implicated in some other high-profile crypto scandals that have raised concerns about market manipulation in the fast-growing memecoin space.
Bubblemaps traced a series of transactions that led to Davis. These addresses received funding by centralized exchanges (CEXs) a day before YZY’s official launch and were used to snipe. Sniping is the practice of using automated bots or smart contracts to buy a large amount of a newly launched token, often at a significant profit.
Bubblemaps revealed a trend of funding, cross-chain transfers (CCTP), and deposits linking Davis to a team of 14 snipers. It is believed that the snipers purchased the YZY tokens a few minutes after the launch at a profit of 12 million dollars when the token’s value rose.
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Insider Involvement Raises Serious Concerns About Market Manipulation
As there is no indication as to whether Davis had an inside connection or contact with the YZY team, it is possible to speculate that it was a well-organized move. The rate of occurrence of such purchases also points to the privileged position Davis enjoyed of being among the first to acquire the YZY token when its price was still low.
It is not the first time Davis has been involved in dodgy crypto-related activities. In April of this year, he admitted to sniping LIBRA tokens, which temporarily rose in value since they were attached to the name of Argentine President Javier Milei. The token, however, crashed, which raised doubts about the integrity of the market.
As more celebrity-backed crypto tokens, like YZY, become public, transaction transparency and fairness are gaining traction. The rise in the popularity of sniping has resulted in the necessity of stricter regulation and control to prevent attempts at manipulating the market.
Fears that insiders would gain an advantage are a possibility, and there has been a desire to provide more protection to ensure that investors are leveling the playing field.
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