Hayden Davis Alleged to Snipe YZY Token for $12M Profit via 14 Wallets

Hayden Davis, also known as Kelsier, is alleged to have orchestrated a coordinated sniping operation on Kanye West’s YZY token that reportedly generated $12 million in profits across 14 connected wallets [1]. The operation, uncovered by blockchain analytics firm Bubblemaps, began with a timing analysis showing Davis received access to $57 million in previously frozen USDC stablecoins on August 20 [1]. This unfreeze was part of the resolution to the LIBRA token scandal, a prior controversy in which Davis denied allegations of fraud and insider trading [1].

According to Bubblemaps, the YZY token launch was preceded by transactions from centralized exchanges into wallets linked to Davis. These accounts were prepared to snipe the token using cross-chain transfers and shared deposits [1]. The wallets began purchasing YZY as early as 1:54 A.M. UTC—just one minute after the token’s announcement—and this pattern mirrored Davis’s past involvement in sniping high-profile tokens like MELANIA [1].

Bubblemaps noted it could not confirm whether Davis had direct connections to the YZY team or accessed insider information, but the firm did document a coordinated purchasing strategy and the eventual extraction of significant profits [1]. The YZY token’s launch was highly controversial, with its market capitalization surging to nearly $3 billion before collapsing within hours [1]. Independent analyst Conor Grogan estimated that 94% of the initial YZY supply was controlled by insiders, with one multisig wallet holding 87% before dispersing [1]. The token’s high trading fees, slippage, and volatility ultimately led to a price drop of over 90%, with YZY trading at $0.5670 as of the report’s publication—82% below its peak of $3.1633 [1].

YZY’s tokenomics included a 1% base fee, with dynamic adjustments reaching 2.68%, and wider bin steps introducing additional slippage, collectively creating an estimated 10% round-trip cost for traders [1]. These factors, combined with the suspected insider advantages and sniping activity, contributed to the token’s volatile performance and raised broader questions about market fairness in celebrity-backed token launches.

The investigation into YZY is ongoing, with blockchain forensics firms continuing to scrutinize the token and similar projects for signs of manipulation [1]. This case further underscores the risks associated with speculative crypto projects, particularly those tied to high-profile figures and rapid capital inflows.

Source: [1] Hayden Davis Allegedly Sniped Kanye West’s YZY Token to Make $12M in Profits (https://cryptoslate.com/hayden-davis-allegedly-sniped-kanye-wests-yzy-token-to-make-12-million-in-profits/)