Simply put
- The wallet associated with promoter Hayden Davis from Libra Meme Coin turned a $12 million profit with Yzy, a token launched by Kanye West.
- Bubblemaps, a startup focused on blockchain visualization, uncovered the connection between Davis and the over-chain transaction.
- Libra was promoted prior to the crash that Argentine President Javier Milei experienced in February.
Libra Meme Coin promoter Hayden Davis capitalized on the Yzy token created by Kanye West shortly after its launch, according to an on-chain analytics firm.
This trade occurred just one day after Davis secured funding linked to the controversial launch of Libra, which was promoted by Argentine President Javier Milei before the tokens’ epic drop—a scenario that was exacerbated by a federal judge’s actions in Manhattan.
Wallets highlighted on Bubblemaps acquired Yzy just a minute after the token’s official announcement, generating $12 million from an initial investment of $2.8 million. The company reported that multiple wallets were actively funded. It seems there was a network of addresses in place, poised to snatch Yzy the day before the token was made public.
Kanye’s tokens remained live for only two days before being designated as the official token for the controversial artist. They employed 25 tokens as a strategy to minimize sniping risks before selecting one for actual transactions.
A “snipe” typically refers to swift token purchases timed just after a launch or announcement. It’s interesting to note that being a snipe doesn’t always imply insider knowledge; sometimes it could just be a matter of luck.
Notably, the wallet aligned with Davis made a purchase of Yzy a minute post-announcement rather than at the initial release.
Deeve, an investigator affiliated with Bubblemaps, mentioned, “It’s tough to ascertain what Hayden Davis aims to achieve with Yzy.” He added, “At this point, it’s unclear if he had insider info or simply acted for profit.”
Davis has been known for sniping well-known tokens in the past. He had previously allowed Libra tokens to be sniped, claiming it aimed to prevent price collapses. However, Libra itself fell by 99% on its first day. Bubblemaps pointed out that Davis also sniped the launch of Melania Trump tokens, admitting his role in that launch.
In a discussion with YouTube investigator Coffee Gilla, Davis justified his role in sniping tokens during launches but denied engaging in the sniping process himself.
Bubblemaps traced connections from Melania Trump’s token team wallet to Libra and 14 Yzy wallets, inspecting 44 in total. These wallets rolled out $2.8 million in Yzy tokens soon after launch, amassing $12 million in profit over time.
Kelsier Ventures, where Davis serves as CEO, did not respond to inquiries for comment.
The launch of Yzy happened just a day after a federal judge lifted a freeze on $57.6 million belonging to Davis and Ben Chau. Initially, those funds were frozen due to the scrutinized launch of Libra, but the judge determined they did not regard Davis and Chau as “evasive actors.”
Bubblemaps expressed concerns about the timing of Yzy’s launch following the release of the Libra funds, suggesting potential foul play, though it appears the unfrozen funds haven’t exited their wallets.
Both $13.06 million and $44.59 million remain untransferred from specific wallets.
Davis and Chau are still involved in a lawsuit that seeks $100 million in damages stemming from the Libra launch. Although, last week, the judge indicated skepticism about the plaintiff’s chances of success.
