A major cryptocurrency scandal has unfolded as blockchain analysts revealed concerning connections between the recently collapsed LIBRA meme coin and several questionable crypto projects, including the MELANIA token.
The investigation gained momentum after LIBRA's dramatic rise and fall following a brief endorsement by Argentina's President Javier Milei. The token's market cap surged to $4.5 billion before plummeting by 90% amid suspicious trading activity.
Chaofan Shou, co-founder of Fuzzland, exposed evidence linking LIBRA's market maker in Delhi to the team behind the MELANIA meme coin. Wallet data suggests the same entity controlled both projects, along with other controversial tokens like Enron and OGME.
These projects displayed similar patterns - rapid price increases driven by insider trading and automated bots, followed by sudden sell-offs that left retail investors with substantial losses. In LIBRA's case, insiders reportedly withdrew $107 million shortly after the price surge.
KIP Protocol, an entity connected to LIBRA, has denied involvement in any wrongdoing. CEO Julian Peh stated that all funds remain traceable on-chain and emphasized KIP had no role in the token's launch.
Meanwhile, Hayden Davis of Kelsier, LIBRA's market maker, shifted blame to President Milei's team. Davis claimed the deletion of promotional posts by Milei's office triggered panic selling. He announced plans to reinvest $100 million into the project and burn acquired tokens.
The controversy has sparked calls for investigation into potential market manipulation. Critics have even demanded President Milei's impeachment over his brief endorsement of the project before distancing himself.
This incident adds to growing concerns about speculative meme coins, particularly those associated with high-profile figures. While project insiders maintain LIBRA's legitimacy, investigators continue examining its ties to previous cryptocurrency schemes that followed similar collapse patterns.