A potential connection between the creators of the LIBRA token and the MELANIA memecoin has been uncovered by the blockchain data analysis firm Bubblemaps and internet sleuth Stephen “Coffeezilla” Findstein.
According to Bubblemaps, a wallet associated with the development of MELANIA also provided funding to the wallet responsible for initiating the launch of LIBRA.
The investigation unveiled that this particular wallet was engaged in sniping activities, a technique where tokens are acquired within moments of their release, often exploiting insider information.
Reportedly, this wallet withdrew more than $87 million from LIBRA’s liquidity pool and performed a $6 million snipe maneuver.
Further analysis indicates that the same entity may have been linked to prior ventures like TRUST, KACY, VIBES, and HOOD.
Identified Figures in the Ventures
Notable cryptocurrency figure Hayden Davis from Kelsier Ventures has publicly acknowledged his involvement in the launch of the LIBRA token.
He disclosed that Julian Peh of Kip Protocol, Mauricio Novelli, and Manuel Godoy from Tech Forum Argentina were part of the team spearheading the project.
In an interview with Coffeezilla, Davis also confirmed his participation in the MELANIA token but disavowed any association with the HOOD initiative. When prompted about MELANIA, he stated,
“I was part of it.”
Davis implied that the team anticipated sniping activities due to similar occurrences during the TRUMP launch, the memecoin linked to former U.S. President Donald Trump.
Additionally, Davis claimed that the reduction in liquidity from LIBRA was not for personal gain but to stabilize the token through a strategic approach.
He asserted that the liquidity reduction was intended to discourage significant investors from immediately offloading their holdings.
Reportedly, the capital acquired from sniping activities would be reinvested back into the project; however, there is widespread skepticism among investors and analysts.
Market Response and Investor Concerns
Following revelations of internal operations, LIBRA has witnessed a substantial decline in its valuation.
After initially achieving a market cap exceeding $4 billion, the token’s value has plummeted to $94,397,755, representing a loss of over 90%, based on CoinMarketCap statistics.
Similarly, MELANIA’s value has dwindled, trading at $1.3 currently, indicating a 2.3% decline for the day.
While this depreciation could be attributed to a broader market adjustment, doubts regarding the team’s involvement in contentious projects have heightened apprehensions among investors.
Davis has committed to relinquishing approximately $100 million from LIBRA’s liquidity reserves within the forthcoming 48 hours, although uncertainties persist regarding the project’s future.
Political Ramifications: President Milei Under Scrutiny
Argentina’s President Javier Milei is facing scrutiny following his endorsement of the LIBRA token. Opposition figures have called for his removal, branding the situation as a disgrace to the nation.
Moreover, a legal case alleging fraud has been initiated against him concerning the project.
Milei has refuted direct involvement in the token’s development, asserting a lack of specific insights into the matter.
In the wake of the controversy, he has withdrawn his support, further compounding doubts surrounding the legitimacy of the project.