LIBRA Token Founders Connected to Previous Meme Coin Rug Pulls, Including MELANIA Project

Recent blockchain analysis has exposed connections between the LIBRA meme coin and various questionable cryptocurrency projects, including the official token associated with Melania Trump. These revelations have sparked concerns about LIBRA, particularly following its brief endorsement by Argentina's President Javier Milei.

On February 16, Chaofan Shou, co-founder of Fuzzland, claimed that LIBRA's market maker is based in Delhi and has been implicated in the MELANIA meme coin . Shou presented wallet data indicating that the same entity managed both initiatives, suggesting potential coordinated insider activities. He also connected the LIBRA team to other tokens such as Enron and OGME, which exhibited similar patterns of price manipulation.

These projects witnessed rapid price increases driven by insider trading and automated bots, followed by abrupt sell-offs that left retail investors facing losses. This pattern mirrors pump-and-dump schemes aimed at exploiting traders.

The MELANIA token, launched shortly before Donald Trump's anticipated second-term inauguration, briefly achieved a $2 billion market cap before plummeting below $200 million. LIBRA experienced a similar trajectory, where, after receiving public backing from President Milei, the token attracted significant investment. However, insiders reportedly withdrew $107 million shortly thereafter, causing its collapse.

In the aftermath, President Milei distanced himself from LIBRA, prompting accusations of market manipulation and calls for his impeachment due to the alleged financial and political scandal.

LIBRA Insiders Deny Fraud Allegations

Amid the controversy, KIP Protocol, a party linked to LIBRA, denied any misconduct. Julian Peh, CEO of KIP, insisted that all funds remain transparent and accounted for. Peh clarified that KIP did not have any involvement with the token's launch, placing responsibility on Kelsier, the project's market maker.

"KIP has faced significant FUD today, including threats to me and my staff, yet we were not involved in the launch, nor did we manage any tokens or SOL. KIP publicly recognized our role in the project (though not in token issuance) because we were already listed on the website and supported its potential," — KIP stated.

Meanwhile, Hayden Davis of Kelsier attributed investor losses to President Milei and his team. He contended that meme coin investments heavily depend on trust and endorsements, and when Milei's team removed their promotional posts, it triggered panic selling and a sharp market decline.

Davis asserted that his team continues to believe in the project and plans to reinvest $100 million into it. Instead of transferring assets to associates of President Milei or KIP, Kelsier intends to reinvest in LIBRA and burn all acquired tokens.

"I propose to reinvest 100% of the funds under my control, up to $100 million, back into the Libra Token and burn the acquired supply. Unless a more viable alternative is proposed, I aim to commence this plan within the next 48 hours," — Davis declared.

The LIBRA controversy underscores the risks associated with speculative meme coins, particularly those associated with prominent figures. While some maintain confidence in the project's viability, investigations are ongoing into its potential market manipulations.

Frenzy Lessons

President Donald Trump and First Lady Melania Trump launched their own meme coins—TRUMP and MELANIA—just days before his inauguration, sparking a frenzy among crypto traders.

The coins, which offer no intrinsic utility, soared in value initially before plummeting, leaving many investors with significant losses. Critics and regulators have denounced the launches as speculative gimmicks that exploit the Trump brand, raising serious conflict-of-interest concerns. The launches also triggered a deluge of over 700 copycat tokens in Trump’s official digital wallet, further muddying the market. Lawmakers and industry experts are now calling for tighter regulatory scrutiny to rein in what they warn could lead to widespread financial harm.

A rug pull is a type of crypto scam in which developers or project creators suddenly withdraw all the funds from a cryptocurrency’s liquidity pool and disappear, leaving investors with worthless tokens. In these schemes, investors are lured by promises of high returns or innovative technology, only for the project to collapse once the creators exit, effectively “pulling the rug” out from under everyone. This tactic is common in decentralized finance and meme coin projects, where minimal oversight and regulatory protections make such fraud easier to execute.

Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.