After Argentine President Javier Milei endorsed the LIBRA meme coin launched on February 14, 2025, it has change into the topic of investigations by specialists as a result of a pump-dump rip-off. When insiders shortly offered off their shares, they withdrew $107 million, inflicting the coin’s worth to crash and wiping out over $4 billion from its market cap inside just some hours. This report will look into how the market reacted, the general sentiment of the neighborhood, and the consequences of the coin’s launch. We’ll additionally discover the roles of main figures, the Argentine authorities, and what may occur subsequent with the $LIBRA coin.
From Startup to Rip-off: All About LIBRA Meme Coin
$LIBRA is a cryptocurrency created by entrepreneur Hayden Davis, who can also be the CEO of Kelsier Ventures, a crypto funding agency. Bloomberg experiences that KIP Protocol, an organization targeted on decentralized AI know-how, was concerned in launching $LIBRA.
KIP claims they joined after the launch to assist choose tech tasks and assist AI efforts. The coin runs on the Solana blockchain, recognized for its fast and low-cost transactions, fashionable with meme coin merchants.
Folks may purchase the token by means of an internet site named vivalalibertadproject.com, a slogan usually utilized by Milei, whose political social gathering can also be named La Libertad Avanza.
Presidential Endorsement Ignites a Meteoric Value Surge
On the night of February 14, Argentine President Javier Milei posted on social media that the $LIBRA token would enhance Argentina’s financial system and assist small companies. He linked to the token’s web site, selling it as a option to fund native corporations and ventures. It was reported that the $LIBRA token was created simply earlier than Milei’s announcement and the web site area was registered the identical day.
Milei claimed in his put up that Argentina was attracting world funding. Initially, $LIBRA’s worth began close to zero and was concentrated in a number of digital wallets. After Milei’s endorsement, its worth skyrocketed to almost $5, pushing its market cap over $4 billion.
https://twitter.com/KobeissiLetter/standing/1890611969075413316
Nonetheless, a neighborhood warning quickly appeared on his put up, advising customers to confirm the venture earlier than participating, suggesting it is likely to be a rip-off the place builders abandon the venture after accumulating funds. Shortly after, Milei deleted his put up and claimed he wasn’t totally conscious of the venture particulars and determined to cease supporting it.
Inside a number of hours, the token’s worth plummeted to only cents, and its market cap misplaced over $4.4 billion. In response to The Kobeissi Letter, insiders began promoting off $87.4 million price of $LIBRA throughout the first three hours of its launch, and 82% of the tokens have been managed by a single group with out public disclosure of the token’s economics.
Hayden Davis, the entrepreneur behind $LIBRA, admitted to protecting some income regardless of the token’s sharp decline.
President’s Gamble was Surprising
Curiosity amongst retail buyers in memecoins with movie star endorsements surged following the discharge of the Official Trump (TRUMP) memecoin by US President Donald Trump on January 18. This was intently adopted by the launch of the Melania Meme (MELANIA) token by First Girl Melania Trump on January 19 on the Solana community, simply earlier than the President’s inauguration on January 20.
Regardless of admitting to the error by the president, he once more went on to retweet a put up guiding find out how to purchase Libra memecoin. The endorsement of the Libra meme coin by the Argentine president himself may be very surprising. A promotion of a random meme coin by such a extremely valued authorities private is the worst factor. This transfer by the president has been seen as uncommon and signifies his lively involvement within the rip-off.
The rip-off of Libra additionally impacted TRUMP token, leading to a drop of $500 million out there cap.
Argentina Formally Launches $LIBRA Investigation
Earlier than the collapse, different blockchain knowledge corporations had already raised issues concerning the venture. For instance, the blockchain evaluation agency Bubblemaps highlighted points with LIBRA’s tokenomics, mentioning that 82% of the tokens have been out there to be offered proper from the start.
In response to a press release from Argentina’s presidential workplace, the Oficina del Presidente, issued on X on February 16, Milei has requested the Anti-Corruption Workplace to analyze himself and all different authorities members for potential misconduct.
In the meantime, Milei is underneath strain from political rivals calling for his impeachment following his endorsement of a cryptocurrency that led to a $100 million rip-off.
In his statements and tweets, Milei has denied figuring out concerning the venture beforehand. Nonetheless, he has deleted these statements. Moreover, differing tales are coming from others concerned. Early Monday, KIP Protocol, a crypto and AI agency that has beforehand labored with the Argentine authorities, issued an in depth assertion difficult many claims about their function within the LIBRA token launch.
The agency insists that their CEO, Julian Peh, solely met with President Milei as soon as on October 19, 2024, and that assembly didn’t cowl any particular tasks, together with “Viva la Libertad” or any token launches. In response to the corporate, no different employees members had conferences with the Argentine President.
Key Gamers and Their $LIBRA Conspiracy Uncovered
After the LIBRA coin mess, the investigative journalist Coffeezilla reached out to folks linked to the 0xcEA deal with and its creators. He came upon that Hayden Mark Devis, CEO of Kelsier Ventures, his father Tom Davis, and recognized scammer Arunkumar Sugadevan have been behind it.
In an interview, Tom Davis confessed that their group not solely made the LIBRA memecoin but additionally manipulated its preliminary sale to revenue from it. They used a number of pockets addresses to purchase early and made $6 million from these actions.
Insider Buying and selling Ways
The investigation into the LIBRA rip-off confirmed that the scammers behind the venture used their inside information to play the market to their benefit. They used a number of wallets to shortly purchase up giant quantities of the token as quickly because it launched, a tactic referred to as “sniping.”
This entails buying a newly launched token as quickly as it’s launched, usually earlier than common buyers have an opportunity to react. These early patrons then promote their giant holdings a number of hours later for a big revenue, leaving unusual buyers with losses.
Within the LIBRA case, the snipers, linked to the pockets deal with 0xcEA, offered over $100 million price of the token simply as its market worth peaked, capitalizing on the surge and leaving different buyers with devalued property.
Connection Between Melania and Libra Memecoin
A joint investigation by the blockchain analytics agency Bubblemaps and the pseudonymous on-chain investigator Stephen Findeisen, also referred to as Coffeezilla, has revealed proof that the identical group was behind the failed launches of each the LIBRA and MELANIA tokens. Bubblemaps shared on Twitter, “After analyzing cross-chain transfers and timing patterns, we’re extremely assured that is the case.”
The investigation discovered that linked pockets actions between completely different tasks confirmed how income from one scheme have been used to fund one other through cross-chain transfers. For instance, a key pockets on the Solana community, labeled “P5tb4,” revamped $2.4 million from early trades of the MELANIA token after which transferred these funds to an Avalanche pockets “0xcEA” linked on to the token’s creator.
Blockchain data present that the pockets 0xcEA transferred 1.6 million USDC to a few Solana wallets just some hours earlier than the $LIBRA token was launched. These wallets then shortly purchased 3.77 million $LIBRA tokens and offered them for 8.25 million USDC, making a revenue of $6.65 million.
Additional evaluation signifies that the pockets “0xcEAe…06e2” transferred USDC from Avalanche to Solana and made funds to Dave Portnoy, suggesting that this pockets could possibly be instantly linked to the $LIBRA group.
The LIBRA token, which briefly had the assist of Argentine President Javier Milei, shortly reached a multi-billion-dollar market cap earlier than plummeting 95% when insiders pulled out $87 million. Equally, the MELANIA token, endorsed by the U.S. first woman in January, soared in worth initially however then crashed, resulting in important losses for on a regular basis buyers.
In response to Bubblemaps, this group seemingly led a number of different token launches with names like TRUST, KACY, VIBES, and HOOD, all following comparable patterns of fast income adopted by sharp declines.
Tracing the Similar Snipers: From TRUMP to LIBRA
New knowledge from Arkham signifies a sample of fast large-scale buying by the identical group behind each the TRUMP and LIBRA memecoin launches. Blockchain data present that an entity linked to the 6QS deal with—which sniped over $1 million price of TRUMP tokens within the first block of its launch—went on to distribute these tokens to the 5CP pockets and associated addresses, ultimately promoting TRUMP for substantial income.
https://twitter.com/arkham/standing/1891547114032791805
Shortly after President Javier Milei retweeted a “Methods to Purchase LIBRA” put up, an deal with linked to this similar community bought $5 million price of LIBRA.
This fast, high-volume purchase reveals the sooner TRUMP sniping technique, suggesting an analogous strategy to exploiting memecoin launches and endorsements. Investigators say such repeated, large-scale ways level to systematic insider market manipulation, bringing issues that the people behind these trades are orchestrating pump-and-dump schemes throughout a number of tasks.
Conclusion
Till the investigation concludes, we’re left questioning who is actually behind the rip-off: The President of Argentina, KIP Protocol, Kelsier Ventures, or Hayden Davis?
The LIBRA incident highlights the growing risks within the memecoin market. Whereas many buyers are drawn to the potential for quick returns, it’s usually the insiders who truly profit.
As extra frauds are uncovered, the demand for stricter regulation and higher openness within the memecoin house grows extra pressing. The function of the 0xcEA pockets within the LIBRA rip-off showcases the darker facet of the crypto house, the place misleading monetary ways and dishonesty run rampant with none checks.