Hayden Davis Hits $12M Insider Profit on Kanye’s YZY Token
Blockchain analytics firm Bubblemaps reports Hayden Davis, co-founder of the LIBRA project, netted $12 million through early buys of the YZY token backed by Kanye West. Fourteen wallets tied to Davis received large USDC transfers minutes before the August 21 launch, with his main address executing purchases just one minute after the public listing. These trades suggest insider trading on the YZY token. Davis previously profited from meme coins MELANIA and LIBRA, earning $2.4 million and $6 million respectively amid liquidity manipulation. A US court recently unfroze $57.6 million in USDC linked to Davis and Meteora co-founder Ben Chow. The YZY token distribution remains under investigation by Bubblemaps, raising further concerns about market fairness and regulatory oversight for memecoins.
Bearish
News of insider trading allegations around the YZY token is likely to trigger negative sentiment and selling pressure in the short term, as traders react to potential regulatory scrutiny. Over the longer term, confidence in the YZY token may remain weakened unless investigators clear the project, making recovery in price unlikely in the foreseeable future.