Hayden Davis, the founder of the controversial memecoin project Libra (LIBRA), stated that the complaints about memecoin transactions stem from investors who feel disappointed for not being involved in the internal agreements.
Davis made this remark during an interview with YouTube investigator Stephen Findeisen, better known as "Coffeezilla". He also believes that the collapse of the Libra Token was a failure, not a fraud.
"Most investors in memecoins, especially in the early stages - and I think this is a unique story - it's really a game for everyone. The complainers are the ones who are not insiders. All the lamentations on social media come from those who were not involved in the agreements. You will never hear them complain if they were part of those agreements," Davis said.
When asked about the ethics of exploiting insider advantages in memecoin trading, Davis questioned what alternative path could exist.
"So what would you do? You don't launch a project? How do you make money then?" he asked, leaving Coffeezilla seemingly unconvinced.
The initial Libra Token gained attention after being endorsed by Argentine President Javier Milei on the social media platform X (now deleted), helping push the token's market value to over $4 billion before its collapse. At least eight internal wallets linked to the Libra team are believed to have withdrawn a significant amount of funds before the collapse.
As a result, Milei faced harsh criticism, and some Argentine lawmakers even called for his impeachment.
Political memecoins have seen strong growth in recent months, driven by the Official Trump (TRUMP) and Melania Meme (MELANIA) Tokens of former U.S. President Donald Trump. Subsequently, other political figures have also joined this trend, including the President of the Central African Republic, who recently endorsed a memecoin. However, these tokens have suffered significant losses.
The blockchain analysis firm Bubblemaps reported that the wallets hunting for the MELANIA Token were also involved in the LIBRA Token Issuance. These wallets are said to have sniped LIBRA, generating profits of up to $6 million.
Coffeezilla asked Davis whether it was fair for the people behind the coin launch to participate in "sniping" - the practice of using automated bots to secure early positions and profit.
"So I would say no. I'm not saying this should always happen, but in many cases, it's a way to protect. If you have enough volume, you can pull some out so that everyone has a chance to push the price back up. Because with memecoins, they go up and down so fast that a project can collapse in just two days. The only hope is that you have enough resources to keep fighting and overcome the snipers," Davis replied.
Many in the crypto community mocked Davis's response, and some industry members expressed strong opposition.
"It pisses me off. His argument is that crypto only exists to extract money. This also shows he has never actually used a real crypto project," Andre Cronje, co-founder of Sonic Labs, wrote on X.
While some believe that investors should take personal responsibility for their decisions, others think the widespread impact of memecoins is harming the industry.
"At this point, if you get rugged, whether by Trump, Milei, or any coin, that's not a criticism of crypto, that's a criticism of you," Nate Geraci, President of The ETF Store, stated.
Adding to the concerns, Samczsun, the founder of the SEAL911 security group, warned that memecoins are driving an unsustainable cycle.
"Even if the initial vision of a memecoin is good, it's hard to believe that anyone can argue in good faith that the current state of affairs is anything other than negative outcomes. Memecoins are a forest fire burning our industry, and if we don't want to be left with ashes, it's time to act," he said on X.
Disclaimer: This article is for informational purposes only and not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions.
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Minh Anh
