Crypto’s Wildest Scandal Yet: The Rise and Fall of Hayden Davis and the $100M Memecoin Controversy

The crypto market is no stranger to scandals, but this week’s drama involving memecoins, political endorsements, and a staggering $100 million withdrawal has taken things to a whole new level. At the center of it all is Hayden Davis, a 28-year-old entrepreneur from Texas, who has now become the face of memecoin manipulation.

From Memecoin Mogul to Controversial Figure

The crypto world was rocked by the $600 million collapse of Libra, a memecoin backed by Argentine President Javier Milei. Yet, while the spotlight remained on Milei’s involvement, another high-profile name emerged—Melania Trump.

Davis, the mastermind behind Libra, had also played a key role in launching Melania Trump’s memecoin on January 19. That token saw a meteoric rise before crashing, wiping out a jaw-dropping $1.6 billion in value. Now, following a viral YouTube interview, Davis has found himself at the center of allegations of market manipulation, liquidity sniping, and political entanglements.

The $100M Withdrawal and the Libra Meltdown

Davis has been accused of siphoning off $100 million worth of crypto from Libra’s liquidity pool, leaving investors reeling. The memecoin, which Milei promoted heavily, soared in value before crashing, leading to the Argentine president deleting his promotional posts and distancing himself from the project. The fallout has been severe—an Argentine judge has even launched an investigation into Milei’s ties to the scandal.

Davis, however, insists he’s innocent, claiming he was merely acting as an intermediary. In a now-infamous interview with Barstool Sports’ Dave Portnoy, he defended his actions:

“I’m just custodying money that should be for the government or at least the country of Argentina… I don’t want [the money].”

But his statements have done little to ease suspicions. Critics argue that his actions bear all the hallmarks of a classic “rug pull,” a scheme in which insiders drain liquidity from a project, leaving investors with worthless tokens.

Melania Trump’s Memecoin: A Similar Pattern?

Davis’ involvement with memecoins doesn’t end with Libra. His ties to Melania Trump’s failed crypto venture raise even more questions. The Melania token briefly peaked at a $2 billion market cap before crashing by 75% within a day—a near-identical pattern to what happened with Libra.

Blockchain analysis by Bubblemaps has linked wallets connected to Davis with large-scale sniping operations. One wallet, which made a $2.4 million profit from Melania’s token, was later found to be connected to the Libra launch. These findings suggest an organized effort to manipulate prices and extract massive profits.

Sniping: A ‘Necessary’ Evil?

Davis argues that his strategy was meant to protect the projects from snipers—investors who buy up large amounts of a new token to cash out quickly and tank its value. His solution? Engage in sniping himself to maintain control over price movements.

“Our goal was, can we take enough liquidity off to get all the snipers out?” Davis explained, adding that he planned to reinject liquidity back into the project later.

This justification hasn’t convinced many in the crypto community, especially as Milei and his team scramble to distance themselves from the fiasco. Even KIP Network Inc., the company initially listed as Libra’s developer, has tried to back away, claiming they were brought in post-launch for advisory purposes.

BitGalactic’s Take: A Dangerous Precedent for Crypto?

The BitGalactic team sees this saga as more than just another crypto scandal—it’s a symptom of deeper problems in the space. Memecoins, once a joke, have now become a breeding ground for pump-and-dump schemes, and their increasing ties to political figures add a new layer of risk for investors.

“This isn’t just about Hayden Davis or Libra,” BitGalactic analysts warn. “We’re seeing a dangerous trend where memecoins are being used for political fundraising, influencer manipulation, and massive liquidity grabs. If regulators don’t step in soon, the next collapse could be even bigger.”

Davis himself seems to acknowledge that he’s playing a high-stakes game, referring to his work on Libra as an “experiment” and hinting at even bigger plans.

“There were much bigger things happening in the background. Tokenizing a country.”

What’s Next?

With an ongoing investigation in Argentina and blockchain analysts uncovering more links between Davis’ wallets, this story is far from over. Whether Davis is a misunderstood innovator or a master manipulator, his impact on the crypto market is undeniable.

As the dust settles, one thing is clear: the crypto world needs to wake up. Memecoins are no longer just a joke—they’re big business, and without proper oversight, they could become the next major financial crisis.