In an exclusive interview with investigative YouTuber Coffeezilla, Hayden Davis, a key figure behind Argentina’s Libra token, broke his silence on the controversy surrounding the project.
Background
The Libra token, promoted by Argentine President Javier Milei, was initially positioned as a private initiative aimed at supporting Argentina’s economy. The project quickly gained traction, reaching a staggering $4.5 billion market cap before plummeting in value. (Read our earlier article: Argentina President Milei Distances Himself from LIBRA Memecoin After 90% Crash)
- Following the crash, suspicions arose regarding the disappearance of $100 million, with Davis confirming that he currently holds the funds but does not know how to proceed with them.
Milei, who heavily endorsed the token, later deleted his promotional posts and attempted to distance himself from the project.
Key Revelations from the Interview
Insiders and Market Manipulation
According to Davis, Libra’s launch was plagued by sniper bots and insider traders, who scooped up large amounts of tokens before retail investors had a chance to buy.
- These snipers reportedly secured positions worth millions, creating artificial price surges before dumping the tokens, crashing the market.
To counteract this, Davis admitted that the team withdrew liquidity from the market, a move that critics say amounts to a rug pull.
- He justified this action as a way to “protect the floor price” and maintain stability ahead of planned marketing efforts.
Milei’s Involvement
One of the most controversial aspects of the interview was Davis’ claim that President Milei had planned additional promotional videos for Libra before abruptly pulling his support.
- Davis speculated that Milei faced “extreme political pressure” and panicked, leading to the collapse of the token and widespread financial losses for investors.
The Missing $100M
One of the critical issues is the fate of $100 million in funds, which Davis claims he still controls but has no clear plan for. He outlined three potential options:
- Refunding investors based on transaction history.
- Reinjecting the funds into the Libra market.
- Donating the funds to an Argentine non-profit.
Davis admitted that his life is in danger, with threats from both investors and criminal organizations.
- He expressed frustration that neither the Argentine government nor other key figures have provided guidance on how to handle the situation.
Insider Benefits and Crypto’s “Rigged” Game
Coffeezilla challenged Davis on the ethics of insider trading, pointing out that early investors, including media personality Dave Portnoy, were aware of the launch beforehand.
- Portnoy reportedly invested $5 million into the token and was later refunded after losses, sparking further allegations of preferential treatment.
Davis defended the practice, stating that insiders always benefit in meme coin launches and that this has become an accepted part of the crypto landscape. “It’s a game,” he admitted, comparing it to an unregulated casino where retail investors are at a major disadvantage:
“Every KOL… That’s how they make their money. They know about the deal. They agree to the deal, and they make money on the deal. And the people that get mad are people that aren’t insiders.”
Other revelations:
- Davis said people involved in $Melania are also involved in the $Libra token launch.
- He also said the Trump token was offered to those who were at the crypto ball (before Trump’s inauguration) last month.
What Happens Next?
Regulatory bodies in Argentina are investigating the case, while legal action against Milei and Davis is mounting.
This article is published on BitPinas: Insider Trading Scandal: Coffeezilla Uncovers Libra Token Manipulation
