Analysts have linked a wallet that sniped the Kanye West-themed token YZY to a larger scheme involving the LIBRA token, suggesting a coordinated effort to extract millions using insider information.
On-chain investigator Dethective revealed in a series of posts that a specific wallet swiftly acquired $250,000 worth of YZY tokens at a price of $0.20, significantly lower than what most traders paid. Within minutes, this wallet amassed over $1 million in profit, which was subsequently transferred to a treasury wallet. This same treasury wallet had previously received substantial funds from wallets associated with the launch of LIBRA six months prior.
Reportedly, two "Libra sniper" wallets extracted a combined $21 million. In total, nearly $23 million was allegedly extracted across the YZY and LIBRA launches, with the funds later moved to Kamino or Binance. Dethective stated, "We can be sure this is someone with clear inside info... The proof is that he did not snipe any coin besides $YZY and $LIBRA and he was prepared with huge size".
The connection between the YZY sniper wallet and the LIBRA extraction network has been corroborated by onchain analytics platform Nansen and blockchain security firm Cyvers. Cyvers stated, "The YZY launch sniper wallet does overlap with the LIBRA extraction flow wallets... That points to the same actor (or a closely coordinated group) being involved in both events". Nansen also confirmed the overlap but noted that a definitive connection to Hayden Davis, a figure associated with the LIBRA token, remains unconfirmed. Nansen also added that it is always up for debate on what the insider information is and if it indeed is insider trading.
This alleged scheme highlights the potential for exploitation within the cryptocurrency market, particularly with new token launches. The ability to quickly acquire large amounts of tokens at preferential prices, coupled with the subsequent movement of funds through various wallets and platforms, raises concerns about market manipulation and insider trading. The involvement of a wallet associated with the YZY token, named after Kanye West, adds another layer of intrigue to the situation.
The investigation is ongoing, and further details are expected to emerge as analysts continue to examine the flow of funds and the connections between the various wallets involved. This incident underscores the importance of transparency and security within the cryptocurrency space, as well as the need for robust monitoring and regulatory oversight to prevent illicit activities.
