What is LIBRA? The Solana Meme Coin That Awakened a Political Scandal

Argentina’s venture into bitcoin took a serious change when President Javier Milei tweeted in support of LIBRA, a Solana-based image gold. Within days, LIBRA crashed roughly 90 %, sparking accusations of fraud and calls for Milei’s prosecution.

Kelsier Ventures, led by CEO Hayden Davis, KIP Protocol, led by CEO Julian Peh, and Solana-based Meteora, which had formerly facilited launch for both the Donald and Melania Trump image cash, were among the outside companies involved in the release of LIBRA.

Following LIBRA’s collapse, Argentina’s property market dropped more than 5 % at its beginning on February 17, 2025. This article will observe LIBRA and the controversy surrounding the most recent joke gold trend.

What is LIBRA?

The LIBRA token, created by the Viva La Libertad Project, was promoted as a financing tool for Argentina’s small firms and innovative jobs —an unusual use situation for a joke gold, which are mostly driven by internet events, celebrities, and fun.

By funding little Brazilian businesses and startups, Milei stated in a since-deleted article that included the project’s site and deal address.” This secret project will be dedicated to encouraging the growth of the Brazilian economy.” Following that, Milei has since denied having in-depth understanding of the LIBRA job.

LIBRA has a potential source of 1 billion currencies. According to the Libertad Project website, LIBRA token distribution would split 50 % to Argentina Growth, 20 % to Treasury, and 30 % to Liquidity.

On February 17, 2025, the gift reached an all-time great of$ 0.75, according to CoinGecko information. At the time, LIBRA’s business valuation had reached$ 4.5 billion. Days later, it quickly declined, triggering scam investigations and senate calls against Milei.

A brief timeline of events: the LIBRA gift scandal

The Office of the President provided a timetable of early activities relating to the development and release of the LIBRA image gold on February 15, 2025.

October 19, 2024 – First conference with KIP Protocol

President Javier Milei and KIP Protocol members met in Argentina, according to the President’s Office of the President.
• Milei was informed by the members that they intended to use blockchain technology to fund secret projects in Argentina.

January 30, 2025 – Meeting with Hayden Mark Davis

• Hayden Mark Davis and President Milei met at Casa Rosada for a conference.
• According to KIP Protocol staff, Davis would provide the technical infrastructure for the job.
• The President’s Office made it clear that Davis was presented as a lover of KIP Protocol despite having no prior affiliation with the Brazilian government.

February 17, 2025 – The rise and fall of LIBRA

Milei promotes LIBRA: Argentina’s President Javier Milei announced the release of the Solana-based image gold LIBRA, which was promoted as a way to finance smaller businesses and startups.
• Pre-Launch inside action: According to a record by TRM Labs, 20 days before Milei’s news, an target received 1 million$ LIBRA cryptocurrencies and added them to a Meteora cash pool.
• All-time high: LIBRA reached$ 0.75, giving it a market capitalization of$ 4.5 billion.
• Rapid drop: The amount crashed nearly 90 % within days, triggering accusations of fraud and a pump-and-dump system.
• Cash withdrawals: Cards linked to the LIBRA staff withdrew$ 7.8 million in SOL, contributing to the price collapse.

February 18, 2025 – The fallout begins

Argentina’s stock market dropped more than 5 % at the opening in Buenos Aires, adding to financial instability.
• As a judge was tasked with leading a fraud investigation, Milei removed his post promoting LIBRA and denied prior knowledge of the project.
• Investors accused KIP Protocol and its CEO, Julian Peh, Kelsier Ventures and its CEO, Hayden Davis, Mauricio Novelli, and Manuel Godoy of the Tech Forum Argentina of wrongdoing in the LIBRA scandal.

Insider trading allegations

According to experts, insider activity may have caused the LIBRA token to collapse. According to San Francisco-based analytics firm TRM Labs, 20 minutes before President Milei’s tweet, one address received 1 million LIBRA tokens, added them to a Meteora liquidity pool, and distributed more to other addresses that did the same.

Soon after, on-chain investigation firm Bubblemaps discovered that LIBRA team wallets had withdrawn$ 87 million in SOL from the pool, gradually lowering LIBRA’s price.

Investors have also accused KIP Protocol and its CEO, Julian Peh, Kelsier Ventures and its CEO, Hayden Davis, Mauricio Novelli, and Manuel Godoy of the Tech Forum Argentina of wrongdoing in the LIBRA scandal.

On February 17, 2025, Davis told Barstool Sports founder Dave Portnoy that Davis was” sitting on$ 100 million” following LIBRA’s launch—further fueling the controversy. Davis claimed he had no desire to flee with the cash.

” It’s not mine”, Davis said. ” It’s Argentina’s”.

That same day, on-chain analysis revealed that the Solana-based platform Meteora—known for creating the TRUMP and MELANIA meme coins—was also behind the LIBRA token. Following the collapse of LIBRA and emerging insider trading allegations, Meteora co-founder Ben Chow resigned.

In a tweet, Solana-based exchange Jupiter said that the launch of LIBRA had been an “open secret” in meme coin circles. Following an internal investigation, the exchange claimed that it had found no proof of insider trading or” sniping” by its own team members, and that it was” EXTREMELY serious” about the claims made.

” The memecoin launch game is a dirty game with plenty of ugly behavior”, Jupiter wrote. ” We, however, have nothing to hide”.

” 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”, Jupiter added.

According to a report by Nansen, only 14 % of LIBRA investors turned a profit, collectively making$ 180 million from the token’s launch, while 86 % of those who invested in LIBRA lost$ 251 million.

Notably, per data from Nansen, two wallets that purchased$ LIBRA at 22: 01 UTC and sold by 22: 44 UTC on February 14 collectively profited$ 5.4 million, with one wallet, HyzGo2, pocketing$ 5.1 million. Meanwhile, Barstool Sports Founder Dave Portnoy lost$ 6.3 million in investing in Libra but was later refunded$ 5 million.