An investigation by Blockchain intelligence platform Bubblemaps and internet sleuth Stephen “Coffeezilla” Findstein has uncovered a potential tie between the teams behind the LIBRA cryptocurrency and the MELANIA memecoin.
According to Bubblemaps, a wallet associated with the creators of MELANIA also funded the wallet responsible for launching LIBRA.
The investigation spotlighted this wallet’s involvement in sniping activities, a practice where tokens are rapidly acquired at launch, often leveraging insider information.
Bubblemaps disclosed that this wallet withdrew over $87 million from LIBRA’s liquidity and conducted a $6 million snipe. Subsequent discoveries indicate possible links to previous ventures like TRUST, KACY, VIBES, and HOOD.
Key Figures Involved
Noted crypto influencer Hayden Davis from Kelsier Ventures publicly confessed his role in the LIBRA token launch. Davis mentioned Julian Peh from Kip Protocol, Mauricio Novelli, and Manuel Godoy from Tech Forum Argentina as part of the project’s team.
During an interview with Coffeezilla, Davis confirmed his involvement in the MELANIA token but denied any association with the HOOD initiative. When pressed about MELANIA, he responded:
“I was part of it.”
Davis hinted at anticipating sniping activities based on prior experiences during the TRUMP memecoin launch linked to former U.S. President Donald Trump.
He clarified that the liquidity reduction in LIBRA was aimed at stabilizing the token, not for personal gains. Davis claimed it was a strategy to deter large investors from immediate sell-offs and mentioned that the sniped funds would eventually be reinvested for the project’s benefit. However, doubts persist among investors and experts.
Market Response and Investor Fallout
Following reports of insider involvement, LIBRA faced a substantial decline in value.
Initially valued at over $4 billion, the token plummeted to $94,397,755, indicating a loss exceeding 90% based on CoinMarketCap data.
MELANIA also witnessed a price drop, trading at $1.3 currently, reflecting a 2.3% decrease for the day. This decline, whether due to broader market trends or specific concerns, has fueled investor skepticism.
Davis committed to returning around $100 million from LIBRA’s liquidity pool within 48 hours, yet uncertainties loom over the project’s future.
Political Repercussions: President Milei under Scrutiny
President Javier Milei of Argentina faces scrutiny for endorsing the LIBRA token. Opposition factions have demanded his impeachment, citing the situation as a national disgrace.
Furthermore, a fraud lawsuit has been filed against him in relation to the project.
Milei refuted direct involvement in the token’s creation, claiming ignorance of specific details. Following the uproar, he withdrew his backing, adding to the skepticism surrounding the project’s integrity.