The LIBRA token and the $4.5 billion insider trading have shocked the crypto community. Also, the LIBRA team withdrew millions of dollars from the crypto pool, leaving nearly 100% of the holders on losses. Shockingly, the recent founding and allegation of the MELANIA coin’s team behind this token and its crash has brought additional tremors. Let’s discuss.
LIBRA Token $100M Scam and What Led To This?
The LIBRA token was launched on January 14 and became an instant hit in the crypto market due to the Argentina President, Javier Milei’s endorsement. The LIBRA price surged 3000% during this period, creating an ATH at $4.5.
More importantly, within hours of launch, its valuation hit $4.5 billion. However, things escalated, and it became $4.5 billion in insider trading soon after the Bubblemaps found that just a few investors owned 82% of the tokens.
The LIBRA team withdrew $87M of LIBRA from the liquidity pool, leaving the investors stranded on a losing streak. More importantly, the sniper cashed out $107M, crashing the token by nearly 94%. However, this is just the tip of the iceberg, as much more happened behind this crash.
This includes Dave Portnoy, the person behind JAILSTOOL’s 119,000% rally, and other KoLs who knew about this potential scam. A recent Lookonchain post highlighted Portnoy’s possible involvement in this rug pull. More importantly, he admitted to receiving coins from the LIBRA team but revealed that he had returned them.
However, new findings brought new concerns, especially as the Bubblemaps report claims the MELANIA coin team is behind the LIBRA launch.
The MELANIA and LIBRA Meme Coin Controversy
The alleged findings from the popular on-cain analytics platform Bubblemaps claim that the MELANIA team is behind the LIBRA token launch and the crash. According to a detailed Bubblemaps X post, a specific address, P5tb4, directly connects the FOTUS’s MELANIA memecoin and the LIBRA.
This is because this address made over $2.4M in profits with this LIBRA coin and later transferred all the profits to 0xcEA, a wallet linked to MELANIA’s creator. Bubblemaps alleges a profound connection between the 0xcEA and MELANIA’s creator. It included the funding transaction and coss-chain transfers.
More importantly, the MELANIA meme coin, which rose to the hype before the crash, has also faced similar insider trading, as the analytics page revealed profit manipulation and snipping activities.
“I was a part of this. I think the team did want to snipe it because how big the snipe was on TRUMP btut we weren’t definitely the biggest siniper,” revealed Davis before claiming that the team did not make any money on it or took from liquidity.
Bubblemap’s allegation of the LIBRA token launch and scam involving the MELAINA team came true with a Coffeezilla interview. Now, the question is, who could be the culprit for this between KIP Protocols, Kelsier Ventures, or Hayden Davis?
Further Analysis & Insights
The Bubblemaps team claims to have been tracking the 0xcEA for weeks before finding funding transfers between this wallet and the DEfcyK, the wallet of the LIBRA creators. Notably, this DEfcyK wallet cashed out $87M from the liquidity pool, leaving holders in the dark.
This rug pull has left hundreds of people in massive losses, but Hayden Davis, one of the leading people behind this LIBRA token, claims this is not a rug pull; it’s a plan gone miserable wrong in the recent Coffeezilla interview.
People are saying this is a rug pull, but that is not objectively true. There’s still $60M on the bonding curve of liquidity that’s locked, that is, a $300M market cap. It’s not a rug; it’s a plan gone miserably wrong with $100M sitting in an account that I’m the custodian of, and I would love to know what to do next with these.
However, there’s more. The reports claim that the 0xcEA also snipped the LIBRA token, earning $6M in profits through multiple site addresses. More importantly, this primary address is also linked to various other token launches. This includes TRUST, KACY, VIBES, and $HOOD, ending with the same pump-and-dump scams.
Given this, it is understandable that these people coordinated their efforts in launching the tokens, pumping their value, and dumping them with profits.
Final Thoughts: Coordinated Manipulation?
The Bubbluemaps team has made some key findings about the LIBRA token scam, including its connection with the trending meme coin MELANIA. LIBRA witnessed a liquidity crisis, $4.5b insider trading, and price manipulations with the support of the Argentina President and KoL. The team netted over $100M in profit, leaving retail investors with catastrophic losses.
Now, the key question remains: who’s truly behind these scams? In the recent Hayden Davis interview, he claims it’s no one’s fault but insiders. More importantly, he claims the LIBRA token scam is a plan gone wrong.
Victims await what will come next, as Davis asked what he should do with the $100M from the liquidity pool. Although there’s quite certainty on this topic, investors must await further updates.
The post Libra Token Scam: Uncovering the $4.5B Insider Trading appeared first on CoinGape.
