Word on the street in memecoin circles was buzzing about the Libra (LIBRA) token launch, apparently for weeks before it actually happened. And get this – Argentine President Javier Milei was backing it. According to Jupiter Exchange, this inside scoop was circulating well in advance of the token’s dramatic price surge and subsequent crash.

The token’s downfall was a real gut punch to investor confidence. After launching, a mere eight wallets, seemingly connected to insiders, reportedly pulled out a massive $107 million chunk of liquidity. The result? A staggering $4 billion market cap evaporated in just a few hours.

Adding to the growing questions around the whole thing, it seems folks within the decentralized exchange Jupiter were in the loop about the token’s upcoming debut weeks before it hit the wider market.

Jupiter Exchange even described the token launch as “an open secret in memecoin circles” in a February 16th post on X post:

“We learned of this ~2 weeks ago directly from Kelsier Ventures. While we were initially unsure, we then saw credible evidence in the form of public tweets from Milei’s personal account that he was serious.”

The exchange went on to clarify their position, stating, “We were completely unaware of the dealings between the principals, in this case Milei and the market makers, and were not involved in it in any way, shape or form.”

While there’s no concrete proof directly implicating Jupiter Exchange employees, on-chain data paints a picture. Transactions reveal that the token’s sudden crash was triggered by insider wallets, who started cashing out just three short hours after trading began, causing a dramatic 94% price plunge.

Interestingly, blockchain data firms had flagged potential issues with the project *before* the meltdown even occurred. Blockchain analysis firm Bubblemaps, for instance, warned about LIBRA’s potentially flawed tokenomics. They highlighted that a whopping 82% of the token supply was unlocked and ready to be sold right from the get-go.

In response to the controversy, Milei has reportedly requested the Anti-Corruption Office to launch a full investigation into all government members, including himself, for any possible wrongdoing, according to a statement from Argentina’s presidential office (Oficina del Presidente) on February 16th.

However, the situation has escalated, and Milei is now facing calls for impeachment from his political opponents in the wake of endorsing this cryptocurrency, which ultimately turned into what many are calling a $100 million “rug pull.”

Related: Pantera Capital founder faces tax probe over $850M crypto profits: Report

No evidence of insider trading among team members

As the dust settled from the token’s staggering $4 billion plunge, accusations of insider trading began swirling amongst investors.

Jupiter Exchange took these allegations seriously and launched an internal investigation. They stated that their review found no evidence of insider trading by any members of their team.

“If you have evidence of Jupiter employees leaking information or otherwise sniping, please reach out directly,” Jupiter urged. They followed up by stating their commitment to accountability: “If we discover any team members acted on non-public information, we will take quick and decisive action,” and then added a somber reflection:

“LIBRA was brutal. It was brutal for traders.”

It’s worth noting that the appetite of retail investors for memecoins endorsed by celebrities seems to have been fueled recently. This trend arguably gained momentum after former US President Donald Trump launched his own “Official Trump” (TRUMP) memecoin on January 18th. Shortly after, First Lady Melania Trump followed suit, launching her “Melania Meme” (MELANIA) token on January 19th on the Solana network, just ahead of President Trump’s inauguration on January 20th.

However, despite the initial buzz, enthusiasm for these celebrity coins appears to be waning. Currently, the Trump token is down over 76% from its all-time high, while the Melania coin has experienced an even steeper decline, down over 90%, according to TradingView data.