Everything to Know About the $LIBRA Memecoin Scandal: From $4.5 Billion Hype to Fraud Charges

This article is published on BitPinas: Everything to Know About the $LIBRA Memecoin Scandal: From $4.5 Billion Hype to Fraud Charges

Argentina's President Javier Milei announced the launch of the $LIBRA memecoin over the weekend, with backers such as Kelsier Ventures, KIP Protocol, among others, with the stated goal of funding Argentina's economic development. However, the tokenomics were heavily skewed in favor of insiders, with 95% of the supply unlocked for team members and early investors. Here's everything that happened since then.

Token Dump and Milei's Retraction

Liquidity was initially provided through a single-sided LP on Meteora, but as prices surged, liquidity was gradually removed. Following the fallout, Milei publicly distanced himself from the project, but this did not prevent Argentine opposition leaders from accusing him with fraud.

“I did not promote, I shared,” Milei said in a TV interview. (Read more: Argentina President Milei Distances Himself from LIBRA Memecoin After 90% Crash)

Key Opinion Leaders (KOLs) and Insider Involvement

The launch was reportedly an open secret among select key opinion leaders (KOLs) in the crypto space, with many receiving compensation for promoting the token. Rumors are swirling that screenshots exist documenting which KOLs were involved and to what extent. Furthermore, influencers linked to the project are listed as official partners of Kelsier Ventures, adding to speculation of a coordinated insider campaign.

Coffeezilla Exposes Kelsier Ventures

In an interview with investigative YouTuber Coffeezilla, Kelsier Ventures founder Hayden Davis doxxed himself:

One of the most shocking revelations was that insiders in the TRUMP token were allegedly given early access while the token was still at $500 million FDV during a crypto dinner, raising further concerns about insider trading within the broader memecoin market. “Every KOL… That's how they make their money. They know about the deal. They agree to the deal, and they make money on the deal. And the people that get mad are people that aren't insiders.”

(Read more: “People That Get Mad Aren't Insiders”: Coffeezilla Reveals Libra Token Scandal)

Meteora, Jupiter, and Moonshot's Role

Several major Solana-based DeFi platforms—Moonshot, Meteora, and Jupiter—admitted to having prior knowledge of $LIBRA's launch. However, all denied any insider trading by their teams and maintained that they followed proper listing procedures. Despite these claims, speculation continues that information leaks have been a recurring issue in launches associated with Kelsier Ventures and Meteora. (Read more: Quick Take: Jupiter Addresses Allegations of Insider Trading in LIBRA Token Launch)

Impact on Solana and the Broader Crypto Market

The scandal has significantly impacted the Solana (SOL) ecosystem, with SOL's price declining by about 12% to $177 since the $LIBRA debacle. Many investors now speculate that the “Solana casino” may have peaked, at least for the time being.

This article is published on BitPinas: Everything to Know About the $LIBRA Memecoin Scandal: From $4.5 Billion Hype to Fraud Charges

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