Argentina’s President Javier Milei announced the launch 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.
- The launch generated massive hype, pushing the coin’s fully diluted valuation (FDV) to an eye-watering $4.5 billion.
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.
- Kelsier Ventures reportedly pocketed over $110 million through liquidity provision and token sales.
- As the details of insider allocations and liquidity maneuvers became apparent, $LIBRA’s price collapsed to a $300 million FDV.
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.
- Among them, Dave Portnoy was allegedly paid to promote the coin but later returned his allocation.
- Despite this, he was still reimbursed for his trading losses.
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:
- Davis admitted to sniping a significant portion of $LIBRA’s supply alongside the project’s insiders and leveraging the $110 million proceeds for further negotiations.
- He also confirmed that Kelsier Ventures had a history of similar pump-and-dump schemes, including involvement in the MELANIA token and others.
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.”
Hayden Davis
(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.
- In contrast, Ethereum (ETH) and Binance Coin (BNB) have started to outperform SOL, with many DeFi tokens on Solana seeing 10-20% declines.
- Solana-based meme and AI tokens have suffered even greater losses, plunging between 20-40%.
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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