Milei’s LIBRA: From Ambitious Launch to Scandal

Argentine politician Javier Milei stirred controversy by introducing the LIBRA memecoin, supported by Kelsier Ventures. Initially presented as a means “to fund Argentina’s development,” the project quickly garnered immense attention. Within hours, LIBRA’s trading activity propelled its fully diluted valuation (FDV) to $4.5 billion.

However, as the launch’s details surfaced, it became evident that the coin was structured for insider gain. The initial liquidity setup on Meteora utilized a single-sided LP, and as demand surged, liquidity was strategically withdrawn at higher price points, maximizing returns for early participants.

Insider Dumping and the $110 Million Payday

Despite its promising commencement, LIBRA’s credibility suffered a severe blow when revelations surfaced that 95% of the token supply was unlocked and under insider control. Kelsier Ventures alone reportedly profited over $110 million from LP operations and token sales, leaving unsuspecting retail investors with devalued assets. As awareness spread, the coin’s value plummeted, erasing billions in market capitalization.

LIBRA/USDC chart with timelines – x post by Mando

Milei, facing intense scrutiny, quickly distanced himself from the undertaking. But it was too late—the damage had been done, and LIBRA’s FDV collapsed to a mere $300 million. Subsequently, Milei was formally charged with fraud in Argentina concerning his involvement in the coin’s launch.

Reports suggest that several key opinion leaders (KOLs) were privately informed about the launch beforehand, with some allegedly receiving compensation to promote LIBRA. Among them was Dave Portnoy, who was reportedly reimbursed for his initial allocation and compensated for any trading losses incurred.

Rumors are circulating regarding leaked screenshots detailing the extensive participation of influencers, with numerous KOLs listed as “partners” on Kelsier Ventures’ official website. This situation amplifies concerns about the ethical dimensions of influencer marketing within the crypto space and the imperative for enhanced transparency.

Coffeezilla Exposes Hayden Davis

In a sensational interview conducted by Coffeezilla, Kelsier Ventures founder Hayden Davis was doxxed and identified as residing in Los Angeles. During the conversation, Davis admitted to:

• Sniping a substantial portion of the LIBRA supply alongside the development team allocation
• Utilizing the $110M in profits for leverage in subsequent negotiations
• Compensating influencers and KOLs for LIBRA promotions
• Prior involvement in pump-and-dump schemes including MELANIA
• Enabling insiders to invest in TRUMP tokens at a $500M FDV prior to public launch

These disclosures have further eroded the perceived legitimacy of Kelsier Ventures and their association with multiple dubious projects.

The Role of Meteora, Jupiter, and Moonshot

Despite assertions of unawareness, Meteora, Jupiter, and Moonshot were reportedly informed about LIBRA’s impending launch. While all three entities deny engaging in insider trading, substantial speculation persists regarding potential leaks to insiders in previous launches involving Kelsier and Meteora. Of note, Meteora’s CEO had interacted with Kelsier Ventures’ social media content in the weeks leading up to LIBRA’s launch, further fueling these suspicions.

The Fallout: SOL Ecosystem Takes a Hit

The LIBRA controversy has generated significant repercussions throughout the Solana (SOL) ecosystem. Since the launch, SOL has decreased by over 15%, with many suggesting this signifies a potential downturn for the “SOL casino” trend—at least for the near term. Concurrently, ETH and BNB have begun to outperform, with numerous SOL-based DeFi coins experiencing declines between 10-20%, and specific SOL meme and AI projects plummeting by 20-40%.

SOL/USDT 1-day chart – Bitget

Source: cryptoticker.io