After Argentine President Javier Milei endorsed the LIBRA meme coin launched on February 14, 2025, it has turn out to be the topic of investigations by consultants because of a pump-dump rip-off. When insiders shortly bought 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 only a few hours. This report will look into how the market reacted, the general sentiment of the group, and the results 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 be the CEO of Kelsier Ventures, a crypto funding agency. Bloomberg experiences that KIP Protocol, an organization centered on decentralized AI know-how, was concerned in launching $LIBRA.
KIP claims they joined after the launch to assist choose tech tasks and help AI efforts. The coin runs on the Solana blockchain, recognized for its fast and low cost transactions, widespread with meme coin merchants.
Individuals may purchase the token by way of a web site named vivalalibertadproject.com, a slogan typically utilized by Milei, whose political occasion can be named La Libertad Avanza.
Presidential Endorsement Ignites a Meteoric Worth Surge
On the night of February 14, Argentine President Javier Milei posted on social media that the $LIBRA token would increase Argentina’s financial system and help small companies. He linked to the token’s web site, selling it as a option to fund native firms 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 submit 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 group warning quickly appeared on his submit, advising customers to confirm the mission earlier than partaking, suggesting it is perhaps a rip-off the place builders abandon the mission after gathering funds. Shortly after, Milei deleted his submit and claimed he wasn’t totally conscious of the mission 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. According 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 had been managed by a single group with out public disclosure of the token’s economics.
Hayden Davis, the entrepreneur behind $LIBRA, admitted to preserving some earnings regardless of the token’s sharp decline.
President’s Gamble was Sudden
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 carefully adopted by the launch of the Melania Meme (MELANIA) token by First Woman 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 submit guiding purchase Libra memecoin. The endorsement of the Libra meme coin by the Argentine president himself may be very sudden. 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 available in the market cap.
Argentina Formally Launches $LIBRA Investigation
Earlier than the collapse, different blockchain information firms had already raised considerations concerning the mission. For instance, the blockchain evaluation agency Bubblemaps highlighted points with LIBRA’s tokenomics, mentioning that 82% of the tokens had been accessible to be bought proper from the start.
Based on 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 doable misconduct.
In the meantime, Milei is below stress 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 realizing concerning the mission 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. Based on the corporate, no different workers 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 related to the 0xcEA handle and its creators. He discovered that Hayden Mark Devis, CEO of Kelsier Ventures, his father Tom Davis, and recognized scammer Arunkumar Sugadevan had 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 mission used their inside information to play the market to their benefit. They used a number of wallets to shortly purchase up massive quantities of the token as quickly because it launched, a tactic referred to as “sniping.”
This includes buying a newly launched token as quickly as it’s launched, typically earlier than common buyers have an opportunity to react. These early consumers then promote their massive holdings a number of hours later for a major revenue, leaving abnormal buyers with losses.
Within the LIBRA case, the snipers, linked to the pockets handle 0xcEA, bought 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 related pockets actions between completely different tasks confirmed how earnings from one scheme had been used to fund one other through cross-chain transfers. For instance, a key pockets on the Solana community, labeled “P5tb4,” remodeled $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 information present that the pockets 0xcEA transferred 1.6 million USDC to 3 Solana wallets only a few hours earlier than the $LIBRA token was launched. These wallets then shortly purchased 3.77 million $LIBRA tokens and bought 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 may very well be immediately linked to the $LIBRA group.
The LIBRA token, which briefly had the help 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 girl in January, soared in worth initially however then crashed, resulting in important losses for on a regular basis buyers.
Based on Bubblemaps, this group doubtless led a number of different token launches with names like TRUST, KACY, VIBES, and HOOD, all following related patterns of fast earnings adopted by sharp declines.
Tracing the Identical Snipers: From TRUMP to LIBRA
New information from Arkham signifies a sample of fast large-scale buying by the identical group behind each the TRUMP and LIBRA memecoin launches. Blockchain information present that an entity related to the 6QS handle—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 earnings.
https://twitter.com/arkham/standing/1891547114032791805
Shortly after President Javier Milei retweeted a “The best way to Purchase LIBRA” submit, an handle linked to this identical community bought $5 million price of LIBRA.
This fast, high-volume purchase exhibits the sooner TRUMP sniping technique, suggesting the same method to exploiting memecoin launches and endorsements. Investigators say such repeated, large-scale ways level to systematic insider market manipulation, bringing considerations 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 basically behind the rip-off: The President of Argentina, KIP Protocol, Kelsier Ventures, or Hayden Davis?
The LIBRA incident highlights the rising risks within the memecoin market. Whereas many buyers are drawn to the potential for quick returns, it’s typically the insiders who really profit.
As extra frauds are uncovered, the demand for stricter regulation and better openness within the memecoin area grows extra pressing. The function of the 0xcEA pockets within the LIBRA rip-off showcases the darker aspect of the crypto area, the place misleading monetary ways and dishonesty run rampant with none checks.