Solana News Today: Hayden Davis Allegedly Snipes YZY Memecoin for $12M Profit

Bubblemaps has identified suspicious on-chain activity involving Hayden Davis, also known as Kelsier, in the recent launch of the YZY memecoin, which was tied to Kanye West. According to the on-chain analytics firm, Davis is alleged to have coordinated a “snipe” of the token through 14 linked wallets, generating approximately $12 million in profit within minutes of the token's public announcement [1]. The transactions were executed via pre-funded addresses and cross-chain transfers, which were allegedly funneled from centralized exchanges the day before the launch [2].

The timing of these activities raises additional concerns. Just one day before the YZY token went live, a U.S. court unfroze $57 million in USDC previously linked to Davis from the failed LIBRA token project. Bubblemaps described this as a “suspicious coincidence,” suggesting the newly unlocked funds could have been used to fuel the YZY trades [1]. While the firm has not confirmed whether Davis had insider knowledge of the YZY launch, the on-chain evidence shows a high degree of coordination and preparation ahead of the token's debut.

This is not the first time Davis has been linked to similar patterns. Bubblemaps previously connected him to the launch of the MELANIA and LIBRA tokens, both of which saw rapid price surges followed by sharp declines and investor losses [2]. In the case of LIBRA, Davis was accused of orchestrating a pump-and-dump scheme that led to significant financial and political backlash, particularly in Argentina [4]. He has consistently denied any accusations of market manipulation, attributing liquidity withdrawal to risk management strategies [4].

YZY launched during a period of broader market optimism, with Bitcoin near $114,000 and Solana rising nearly 5% [3]. The token surged by 814% in its initial hours, reaching $1.86, according to CoinMarketCap [3]. However, celebrity-backed tokens often exhibit high volatility and struggle to maintain long-term value. This pattern raises concerns about the sustainability of such projects and the role of hype in driving short-term price movements.

The YZY incident highlights the growing scrutiny of memecoins and the need for clearer regulatory frameworks. Analysts argue that the lack of transparency in tokenomics and the involvement of high-profile individuals in speculative trades expose retail investors to heightened risks [4]. While Davis has positioned himself as a “sniper” rather than a manipulator, the repeated allegations against him have intensified calls for greater oversight and investor education [1].

As the crypto market continues to evolve, incidents like the YZY launch may serve as catalysts for stronger regulatory action, particularly in areas involving market integrity and investor protection. The use of cross-chain transfers and shared deposits in such trades further underscores the need for robust on-chain analytics and enforcement mechanisms to prevent exploitation in decentralized markets [2].

Source:

[1] Who is Hayden Davis? The Person Allegedly Behind (https://www.bitrue.com/blog/who-is-hayden-davis)

[2] Hayden Davis, a key figure in the LIBRA token, snipes YZY (https://www.odaily.news/en/newsflash/445028)

[3] Kanye West Launches Solana-Based 'YZY Money' (https://finance.yahoo.com/news/kanye-west-launches-solana-based-013104546.html)

[4] LIBRA Coin Pump and Dump Leader Hayden Davis Makes $12 MIllion on Kanye West’s YZY Memecoin (https://cryptorank.io/news/feed/d198f-libra-coin-pump-and-dump-leader-hayden-davis-makes-12-million-on-kanye-wests-yzy-memecoin)