Libra Memecoin Founder Defends Project Amid Insider Trading Allegations

Hayden Davis, founder of the Libra (LIBRA) memecoin, addressed insider trading allegations in an interview with YouTube investigator Stephen Findeisen, known as "Coffeezilla." Davis denied the Libra token was a scam, labeling its collapse a failure. He argued that complaints about memecoin trading stem from those excluded from insider deals, stating, "All the bitching on socials is all the people that don’t get into the deals."

The Libra token surged past a $4 billion market cap after support from Argentine President Javier Milei but later plummeted. Insider wallets linked to the Libra team allegedly withdrew large sums before the crash, sparking political backlash and calls for Milei’s impeachment.

Davis defended insider advantages in memecoin trading, implying that launching without such perks would be unprofitable. His stance drew criticism from the crypto community. Coffeezilla also challenged Davis on token sniping, where bots secure tokens at launch for profit. Davis justified it as a protective measure due to memecoin volatility.

Political memecoins are trending, with figures like US President Donald Trump and the Central African Republic's president endorsing tokens. However, these tokens, including MELANIA and LIBRA, have seen significant losses. Blockchain analytics firm Bubblemaps linked a common address to both tokens' sniping activities.

The rise of political memecoins has sparked debate within the cryptocurrency industry. While some emphasize investor responsibility, others fear long-term negative effects. The LIBRA controversy highlights ongoing concerns about transparency and fairness in the volatile memecoin market.