Hayden Davis, the founder of the now-collapsed Libra (LIBRA) memecoin, has dismissed criticism of insider trading in memecoins, arguing that investors complain only when they miss out on lucrative deals. Speaking in an interview with YouTube investigator Stephen Findeisen, better known as “Coffeezilla,” Davis defended the controversial practices surrounding the Libra token’s rapid rise and fall. Davis insisted that early access and insider trading are inherent to memecoin culture, claiming that outrage typically comes from those excluded from these deals. “All the complaining on social media is from people who didn’t get in early. You never hear them complain if they were part of it,” he stated. When pressed about the ethical concerns surrounding insider advantages, Davis questioned what alternative existed, implying that profiting from memecoins is inherently tied to insider positioning. The Libra token saw a dramatic surge in popularity after receiving a now-deleted endorsement from Argentine President Javier Milei. Its market capitalization skyrocketed to over $4 billion before collapsing, with blockchain data revealing that at least eight wallets linked to the project cashed out significant amounts before the crash. The fallout has led to political scrutiny in Argentina, with lawmakers calling for Milei’s impeachment over his alleged indirect involvement in the scandal. Political memecoins under scrutiny The rise of political memecoins has become a growing concern in the crypto industry, particularly following the success of the U.S. President Donald Trump’s Official Trump (TRUMP) and Melania Meme (MELANIA) tokens. Other political figures, including the Central African Republic’s president, have also entered the memecoin space, often resulting in rapid price surges followed by sharp declines. Blockchain analytics firm Bubblemaps recently identified links between wallets involved in both the MELANIA and LIBRA tokens, raising concerns about coordinated insider activities. One wallet reportedly netted $6 million in profits from LIBRA alone. The prevalence of memecoin schemes has prompted warnings from industry experts. Samczsun, founder of security group SEAL911, cautioned that memecoins are fueling an unsustainable cycle of speculation and manipulation. “Memecoins are a wildfire burning through our industry. If we don’t want to be left with only ashes, it’s time to act,” he warned. Community backlash against Davis’ remarks Davis’ comments defending sniping—the practice of using automated bots to gain an early advantage in a token—have sparked backlash within the crypto community. When challenged by Coffeezilla on whether it was fair for project insiders to engage in sniping, Davis replied, “So, I would say no. But sometimes, it’s necessary to protect the project.” Industry figures reacted strongly to Davis’ remarks. Andre Cronje, co-founder of Sonic Labs, criticized his perspective, stating, “His base premise is ‘crypto only exists to extract money.’ He has never used a single real crypto project.” The post Libra Founder Defends Insider Deals as Political Memecoins Face Backlash appeared first on TheCoinrise.com .
