Hayden Davis, a controversial figure frequently associated with celebrity-backed token launches, is facing new allegations of market manipulation involving Kanye West’s YZY memecoin. According to analysis by blockchain firm Bubblemaps, Davis is accused of orchestrating a $12 million snipe—executing high-speed trades moments after YZY’s launch and reaping significant profits [2]. The firm traced a series of pre-funded wallets through centralized exchanges, CCTP transfers, and shared deposits, all of which were linked to Davis’ Kelsier Ventures [2]. These addresses began trading YZY within minutes of Kanye West’s public announcement, with some transactions occurring in less than one minute [2].
YZY is part of a broader ecosystem tied to West’s brand, including a payment processor (Ye Pay) and a spending card (YZY Card). The token saw a dramatic rise of 814% shortly after its launch, peaking at $1.86. Bubblemaps noted that Davis and a group of 14 other traders collectively earned $12 million through similar sniping tactics [2]. The strategy involves deploying bots or smart contracts to buy tokens immediately after a public launch, then quickly reselling them as hype drives up the price [2].
This is not the first time Davis has been linked to such tactics. In February 2025, he admitted to sniping the launch of the LIBRA token, which later collapsed, causing significant losses for investors and drawing criticism from Argentina’s President Javier Milei [1]. Additionally, Davis was involved in the Melania Trump memecoin, which also lost value rapidly after its release [2]. His firm, Kelsier Ventures, has been tied to several other high-profile token projects, all of which have raised concerns about potential market manipulation [1].
The timing of the YZY incident is notable. Less than a week prior, a U.S. federal judge had unfrozen Davis’ assets in an ongoing LIBRA-related case, potentially providing him with the liquidity to execute such a large-scale snipe [2]. Simon Dedic of Moonrock Capital described the incident as “so ruthless and criminal that it’s almost fascinating,” adding that as long as such practices remain legal in the crypto space, similar events will continue [2].
Industry observers have pointed out the broader implications of the YZY case. The memecoin market, while riding a wave of hype and celebrity endorsements, has shown a pattern of short-lived value retention. Tokens tied to high-profile figures—such as former U.S. President Donald Trump and his wife—have lost over 80% of their value since their January 2025 peaks [3]. This volatility raises questions about the sustainability of such projects and the risks they pose to retail investors.
The Davis-YZY incident further underscores the need for clearer regulatory frameworks and investor education in the memecoin sector. While Davis has consistently denied allegations of manipulation, citing liquidity withdrawals as a protective measure, the repeated accusations and suspicious trade timing have eroded trust among market participants [1]. As the crypto landscape continues to evolve, incidents like these may prompt stronger calls for transparent tokenomics and more robust enforcement to protect market integrity [3].
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)
