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$57M Unfrozen, Then $12M Gained: Hayden Davis Accused in YZY Token Sniping

3 hours ago
Bitcoin Ethereum News

TLDR:

  • Blockchain analysts linked $12M YZY sniping profits to Hayden Davis through funding trails and clustered crypto wallet activity.
  • Davis allegedly used wallets funded from exchanges one day before the YZY token launch to snipe the market.
  • Bubblemaps said 14 wallets tied to Davis bought YZY within one minute of the public launch announcement.
  • Davis, already facing a $100M LIBRA lawsuit, has a history of controversial token launches and sniping activity.

As previously reported by Blockonomi, Kanye West’s YZY token shocked markets after a rapid surge and sharp crash. Now, blockchain analysts have tied its launch to another controversy. 

Reports suggest Hayden Davis, also known as Kelsier, made $12 million from early trades on the YZY memecoin. Investigators say the operation bore hallmarks of coordinated sniping, raising scrutiny over Davis’ role in high-profile launches.

According to blockchain analytics firm Bubblemaps, the timing of Davis’ activity drew attention almost immediately. The firm noted that $57 million in Davis’ funds had been unfrozen just before YZY went live. 

The following day, wallets funded directly from exchanges began preparing to buy into the launch. Within one minute of the token’s announcement, those wallets executed buys that later produced large profits.

Bubblemaps linked the trades through funding paths, CCTP transfers, and shared deposits. Analysts said that 14 addresses involved in the YZY launch were connected back to Davis using this trail. 

These wallets turned a reported $2.8 million entry into $12 million in profit. The firm stressed it could not confirm insider access but said the level of preparation raised questions.

Crypto Price and YZY Sniping Tactics

Sniping in crypto refers to buying tokens instantly at launch, often before retail investors can react. 

Bubblemaps said the YZY wallets linked to Davis executed their buys at 1:54 AM UTC, only a minute after the official announcement. That timing gave the group an advantage over regular buyers who entered later at inflated prices.

This is not the first time Davis has been linked to such tactics. Analysts pointed to previous activity around projects such as LIBRA and MELANIA, where Davis or connected wallets appeared early at token launches. 

In one case, Davis admitted to sniping LIBRA’s launch but claimed it was done to stabilize trading. The token later collapsed, losing nearly all of its value.

The YZY trades come while Davis is already facing legal scrutiny. He is currently named in a $100 million lawsuit over LIBRA alongside Meteora founder Ben Chow. Court filings show a federal judge has questioned parts of the case, but the proceedings remain active.

Ongoing Scrutiny of Davis’ Crypto Projects

The pattern across multiple projects has put Davis’ activity in the spotlight. Bubblemaps stated that his connections to both LIBRA and YZY suggest recurring use of clustered wallets and early launch positioning. 

BSC News also reported that Davis profited by moving funds across exchanges before YZY went live.

Blockonomi earlier noted that YZY’s price collapsed 74 percent after an initial surge of 1,400 percent. That market crash left later buyers holding heavy losses while early snipers exited with profits. The report added that controversies tied to Davis continue to shadow each new project he becomes linked to.

For now, Davis has not publicly addressed the latest findings. Analysts say his repeated presence around major launches has left traders wary of token rollouts linked to his name.

The post $57M Unfrozen, Then $12M Gained: Hayden Davis Accused in YZY Token Sniping appeared first on Blockonomi.

Source: https://blockonomi.com/57m-unfrozen-then-12m-gained-hayden-davis-accused-in-yzy-token-sniping/