"Libra Founder Defends Insider Trading in Memecoin Ecosystem"

Hayden Davis, the founder of the now-defunct Libra (LIBRA) memecoin, has sparked controversy by defending insider trading practices in the memecoin ecosystem. In an interview with YouTube investigator Stephen Findeisen, Davis argued that investors only complain about insider deals when they miss out on lucrative opportunities.

Davis insisted that early access and insider trading are integral to memecoin culture, claiming that criticism typically comes from those excluded from these deals. He questioned the alternatives to profiting from memecoins, implying that insider positioning is inherent to the process.

The Libra token experienced a dramatic surge in popularity after receiving an endorsement from Argentine President Javier Milei. Its market capitalization reached over $4 billion before collapsing, with blockchain data revealing significant cashouts from project-linked wallets 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.

The rise of political memecoins has become a growing concern in the crypto industry, with examples like the U.S. President Donald Trump’s Official Trump (TRUMP) and Melania Meme (MELANIA) tokens. Blockchain analytics firm Bubblemaps recently identified links between wallets involved in both the MELANIA and LIBRA tokens, raising concerns about coordinated insider activities.

Industry experts have warned about the prevalence of memecoin schemes, with Samczsun, founder of security group SEAL911, cautioning that memecoins are fueling an unsustainable cycle of speculation and manipulation.

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. Industry figures, such as Andre Cronje, co-founder of Sonic Labs, have criticized Davis' perspective, arguing that his views do not align with the broader crypto community's values.