Hayden Davis, the CEO of Kelsier, made headlines recently for his involvement in two controversial memecoins – LIBRA and MELANIA. This story unfolded on February 18, 2025, when Davis announced that he had refunded $5 million to Dave Portnoy, founder of Barstool Sports, who had lost money on LIBRA. The entire saga sheds light on the murky world of memecoin trading and the risks associated with it.
LIBRA was the first token to hit the market, with Davis proudly behind its creation. However, the excitement quickly turned to chaos when Argentina’s President, Javier Milei, tweeted his support for the project, only to retract it shortly after. This flip-flop triggered a massive 95% drop in the token’s value, leaving investors scrambling for answers.
One of the key tactics used in the memecoin world is sniping, a practice where savvy traders use bots to purchase tokens the moment they become available. This often results in those with inside knowledge reaping the most significant rewards. Davis vehemently denied that LIBRA was a rug pull, insisting that it was merely a failed plan that left $100 million languishing in an account under his control.
Unbeknownst to many, Davis had a hand in launching another memecoin – MELANIA, linked to U.S. First Lady Melania Trump. When pressed about his involvement, Davis admitted to being part of the project but claimed that the team had no financial gains from it. However, conflicting statements emerged when confronted with on-chain data, raising questions about the true nature of the venture.
MELANIA, despite its tumultuous beginnings, now boasts a market cap of $625 million, significantly lower than its initial $2.1 billion valuation. The rollercoaster journey of both LIBRA and MELANIA underscores the volatile nature of memecoins and the risks associated with investing in them.
The controversy surrounding LIBRA took a new turn when Davis issued a $5 million refund to Dave Portnoy, who had suffered losses due to the token’s plummeting value. Portnoy, who had insider knowledge of the project, purchased tokens shortly after Milei’s ill-fated tweet, raising eyebrows about potential insider trading. Davis, however, dismissed these claims, attributing any benefits to those with prior knowledge of the project.
As the dust settles on this tumultuous chapter in the world of memecoins, questions linger about transparency, accountability, and the ethical implications of such ventures. The saga serves as a cautionary tale for investors, highlighting the importance of due diligence and skepticism in the ever-evolving landscape of cryptocurrency.
Expert Insights: Oliver Knight
Oliver Knight, a seasoned journalist and co-leader of CoinDesk’s data tokens and data team, brings a unique perspective to this unfolding story. With a background in market making and a deep understanding of the crypto world, Knight sheds light on the intricacies of memecoin trading and the challenges that come with it.
While Davis and Portnoy remain at the center of this controversy, Knight’s insights offer a broader context to the events unfolding. His experience in the industry provides a valuable lens through which to analyze the risks, rewards, and ethical considerations inherent in the world of cryptocurrency.
As the story continues to unravel, Knight’s expertise will undoubtedly play a crucial role in deciphering the complexities of memecoin trading and its impact on the broader financial landscape. Stay tuned for further updates as this gripping saga unfolds.
