- LIBRA coin crashed inside hours of what was seen as a profitable launch.
- LIBRA was endorsed by Argentina’s President Javier Milei.
- Considered one of its co-creators, Hayden Davis, has revealed insiders got preferential entry to purchase early.
In a shocking twist to the already tumultuous saga of the LIBRA cryptocurrency, certainly one of its co-creators, Hayden Davis, has come ahead with allegations of insiders being given preferential entry to buy the token earlier than its official market launch.
This declare emerged throughout an interview with investigative journalist Stephen Findeisen, generally known as Coffeezilla, shedding gentle on what Davis describes as an “insider’s sport.”
LIBRA’s fast rise and fall
LIBRA cryptocurrency was designed to leverage the excitement round blockchain know-how and doubtlessly stimulate financial development in Argentina by funding small companies and startups.
The token was developed by a staff together with Hayden Davis, beneath the banner of Kelsier Ventures, and with technical help from KIP Protocol, which was invited post-launch to handle the collection of funded tech initiatives. LIBRA was hosted on the Solana blockchain, recognized for its pace and low transaction charges, making it a well-liked alternative for memecoin fanatics.
On February 14, 2025, Argentina’s President Javier Milei threw his weight behind LIBRA through a social media endorsement, describing it as a instrument to “incentivize the expansion of the Argentine economic system.” The token’s worth skyrocketed virtually instantaneously, reaching a market cap of over $4 billion.
Nevertheless, this meteoric rise was short-lived. Inside hours, LIBRA’s worth plummeted again to close zero, with over $87 million cashed out by insiders within the first three hours post-launch, in keeping with monetary analysts.
Javier Milei simply DESTROYED the memecoin market:
Hours in the past, Argentinian President Milei launched a memecoin, $LIBRA, for “the expansion of their economic system.”
Inside 5 hours, over -$4.4 BILLION of market cap was erased.
Is that this the most important rug pull in historical past?
(a thread) pic.twitter.com/t4T69r851d
— The Kobeissi Letter (@KobeissiLetter) February 15, 2025
The collapse was attributed to the basic indicators of a “rug pull,” the place the token’s creators or insiders inflate after which abandon the undertaking, leaving traders with important losses.
Notably, the web site related to LIBRA, vivalalibertadproject.com, was registered on the identical day as its launch, hinting on the rushed and doubtlessly speculative nature of the undertaking.
The Hayden Davis interview revelation
In his candid interview with Coffeezilla, Hayden Davis, also referred to as Kelsier, claimed that earlier than LIBRA was publicly accessible, sure people at a personal dinner in Washington, D.C., have been allowed to purchase 500 million tokens at a reduced value.
Davis described the crypto trade, notably on this occasion, as an “insider’s sport,” the place entry to early, profitable alternatives shouldn’t be equitably distributed.
Davis additional admitted his involvement in one other undertaking, MELANIA, implying that comparable techniques have been used there. His revelations paint an image of a market the place these with connections can manipulate outcomes for private achieve, considerably disadvantaging the common investor.
President Milei faces attainable impeachment
The fallout from the LIBRA debacle has plunged President Javier Milei right into a political maelstrom. Critics, together with opposition leaders and authorized specialists, have accused Milei of fraud, pointing to his promotion of LIBRA which many noticed as an endorsement of a speculative asset that led to investor losses.
The scenario has escalated to the purpose the place Argentine legal professionals have filed fraud complaints in felony courtroom, arguing that the incident resembles a “rug pull” the place traders are lured with guarantees solely to see the worth of their investments collapse.
The scandal has not solely broken Milei’s status however has additionally prompted requires his impeachment. Political adversaries, together with former President Cristina Fernández de Kirchner, have seized this chance to problem Milei’s management, describing the incident as a betrayal of public belief.
The controversy has led to an official investigation by Argentina’s Anti-Corruption Workplace, inspecting whether or not Milei or any members of his administration acted improperly or knew in regards to the token’s doubtful foundations.
