- Blockchain analysis links LIBRA and MELANIA, raising concerns over insider activity and liquidity removal.
- President Milei faces impeachment calls after endorsing LIBRA, now accused of being a pump-and-dump scheme.
Blockchain intelligence platform Bubblemaps and internet investigator Stephen “Coffeezilla” Findstein have identified a possible link between the teams behind the LIBRA token and the MELANIA memecoin.
According to Bubblemaps, a wallet connected to MELANIA’s creator also funded the wallet responsible for launching LIBRA.
The investigation revealed that this wallet was involved in sniping activity, a process where tokens are bought within seconds of their launch, often using insider knowledge.
Bubblemaps reported that this wallet withdrew over $87 million in liquidity from LIBRA and executed a $6 million snipe.
Further findings suggest that the same entity may have been involved in previous projects such as TRUST, KACY, VIBES, and HOOD.
Key figures behind the projects
Crypto key opinion leader (KOL) Hayden Davis of Kelsier Ventures has publicly admitted to being involved in the LIBRA token launch.
He named Julian Peh of Kip Protocol, Mauricio Novelli, and Manuel Godoy from Tech Forum Argentina as part of the team behind the project.
During an interview with Coffeezilla, Davis also acknowledged his involvement in the MELANIA token but denied any role in the HOOD project. When questioned about MELANIA, he responded,
“I was part of it.”
Davis also suggested that the team expected sniping activity based on similar events during the launch of TRUMP, the memecoin associated with former U.S. President Donald Trump.
Davis further stated that the liquidity removed from LIBRA was not for personal profit, but part of a broader strategy to stabilize the token.
He claimed that reducing liquidity was meant to prevent large investors from selling off their holdings immediately.
Allegedly, the funds obtained through sniping would eventually be reinvested in the project. However, many investors and analysts remain skeptical.
Market reaction and investor fallout
Following reports of insider activity, LIBRA experienced a sharp decline in value.
Initially reaching a market capitalization of over $4 billion, the token has since dropped to $94,397,755, representing a loss of more than 90%, based on CoinMarketCap data.
MELANIA has also seen a price decrease, trading at $1.3 at the time of writing, reflecting a 2.3% drop for the day.
While this decline could be part of a broader market correction, concerns over the team’s involvement in multiple controversial projects have raised doubts among investors.
Davis has committed to returning an estimated $100 million from LIBRA’s liquidity pool within the next 48 hours, though skepticism remains regarding the future of the project.
Political fallout: President Milei faces scrutiny
Argentina’s President Javier Milei has come under pressure following his endorsement of the LIBRA token. Opposition leaders have called for his impeachment, labeling the situation an embarrassment for the country.
Additionally, a fraud lawsuit has been filed against him in connection with the project.
Milei has denied any direct involvement in the token’s development, stating that he was unaware of specific details.
Following the controversy, he withdrew his support, further fueling uncertainty surrounding the project’s legitimacy.
