LIBRA Co-Founder Admits to Sniping Token on Launch Day Amid Controversy
LIBRA, the controversial memecoin, faced a storm of accusations after its co-founder, Hayden Davis, openly admitted that the project itself participated in sniping its own token at launch.
Sniping, a tactic involving the use of bots or scripts to buy tokens early in order to capitalize on the initial surge of trading volume, is a common practice in the crypto space. In this case, Davis revealed that LIBRA’s treasury was allocated to purchase the token right after it was launched, essentially front-running retail traders and other investors.
Davis argued that this strategy was part of a broader plan to stabilize the market and deter other potential snipers from taking advantage of the early hours following the launch.
He explained that for memecoin projects like LIBRA, such actions are necessary to inflate the token’s market cap quickly, helping to ensure that large transactions can occur without causing significant price fluctuations.
READ MORE: Ripple USD Stablecoin Hits 120 Million Supply Milestone
Despite LIBRA’s initial success, briefly reaching a market cap of $4 billion, the coin soon plummeted by more than 95% in value, sparking outrage and bringing negative attention to the project. The crypto token was once publicly endorsed by Argentine President Javier Milei, but he later distanced himself from the project.
While LIBRA’s creators, including Davis, face accusations of rug-pulling and insider trading, Davis defends the project as a failed experiment rather than a fraudulent scheme, asserting that the team still holds around $100 million in assets tied to the token.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
