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Blockchain analytics platform Bubblemaps has unveiled compelling on-chain evidence linking the issuers of two high-profile meme coins, LIBRA and MELANIA, both of which led to massive financial losses for investors. The latest findings reveal a web of interconnected wallets, cross-chain transactions, and insider dealings that have cast a shadow over Argentina’s President Javier Milei and several key players in the crypto industry.
LIBRA Token’s Political Background
LIBRA, a Solana-based meme coin, recently skyrocketed in value after receiving a now-deleted social media endorsement from Argentine President Javier Milei. However, the token’s rise was short-lived. Within days, LIBRA’s market cap collapsed by 95% after insiders withdrew $87 million in liquidity, leaving retail investors holding the bag.
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President Milei has denied any prior knowledge of the project, but blockchain forensics and an insider interview have added weight to fraud allegations against the individuals behind the token. Notably, a statement from KIP Protocol, an AI and Web3 firm, disputes multiple claims regarding its involvement in LIBRA’s development.
KIP Protocol’s Role in LIBRA
KIP Protocol’s CEO, Julian Peh, acknowledged that his firm was involved in Project Libertad. A broader initiative was tied to Argentina’s economic policies. However, he insisted that KIP’s role was primarily to oversee fund allocation for Argentine companies. They are distancing the firm from direct involvement in the LIBRA token launch.
“Our primary role is to help run the fund allocation to Argentinian companies, and less on the token side,” Peh stated. “We are not the market makers (MM).”
Despite this claim, an investigation led by Bubblemaps and prominent on-chain detective Stephen Findeisen (CoffeeZilla) has found significant blockchain links between LIBRA and another failed meme coin, MELANIA. Their findings suggest that the same core team was responsible for launching and profiting from both tokens.
Bubblemaps Investigation: The LIBRA-MELANIA Connection
By analyzing blockchain transactions, Bubblemaps identified a key Solana wallet labeled “P5tb4,” which amassed over $2.4 million through early MELANIA token trading. The funds were then transferred to an Avalanche wallet, “0xcEA,”. This wallet was directly linked to MELANIA’s issuer. Later, the same Avalanche wallet funded “DEfcyK,”. This wallet is LIBRA’s main creator wallet on Solscan.
This transactional trail establishes a strong link between the two projects. It also suggests a coordinated strategy behind their launches. Both meme coins followed a similar pump-and-dump pattern. The pattern was massive early insider accumulation, aggressive market hype, a sharp price surge, and eventual collapse after liquidity was drained.
Read Also: Melania Coin Rockets 12,000%, Leaving TRUMP Behind
According to Bubblemaps’ analysis, these entities may also be behind other meme token launches, including projects codenamed TRUST, KACY, VIBES, and HOOD. If proven, this would indicate a larger pattern of fraudulent token launches designed to exploit unsuspecting investors.
Insider Admissions and Project Sniping
Adding to the controversy, an interview with Hayden Mark Davis, a self-proclaimed “launch strategist,” confirmed his role in both the LIBRA and MELANIA token launches. While KIP Protocol claims Davis was never a core team member, his statements contradict the company’s version of events.
Davis admitted to orchestrating the token launches and justified a practice known as “project sniping”. This is a method where insiders front-run their own token launches to protect against external traders manipulating prices. While he claimed they did this to prevent price crashes, he acknowledged the ethical concerns surrounding the practice.
“Every single one of these launches, that’s what happens,” Davis said. “Three to ten guys get these massive chunks.”
His statements further complicate the ongoing investigation. They reveal the extent of insider advantages in these speculative markets.
Dave Portnoy’s Involvement
One of the most surprising revelations from the interview was Davis’ claim that Barstool Sports founder Dave Portnoy received a refund of $5 million after suffering losses in the LIBRA collapse.
“Portnoy knew about the launch,” Davis alleged. “He had time to put $5 million together, traded on this coin, then lost the money ironically, and we refunded him.”
Davis expressed regret over issuing the refund. He also called it “unfair” to other investors who did not get anything.
The Political Fallout
Davis also shed light on the political connections surrounding LIBRA’s launch. He stated that President Milei’s team initially supported the project as a blockchain transparency initiative. However he withdrew their backing afterwards.
“Despite prior commitments, Milei and his team unexpectedly changed their position, withdrawing their support and deleting all previous posts on social media,” Davis said in an Associated Press report.
KIP Protocol, on the other hand, maintains that it was only informed about the project in February 2025 and had no financial or managerial involvement in the token launch.
Future Implications and Investor Concerns
The LIBRA and MELANIA scandals highlight the risks associated with speculative crypto investments, particularly in the meme coin sector. The revelation of cross-chain wallet links and insider dealings further raises concerns about the transparency and integrity of high-profile crypto projects.
Davis, who claimed to be the custodian of $100 million in project funds, stated that he has received death threats and that his family has become a target. “This is an international incident,” he said. “People are after my family. This isn’t some random scam.”
While Davis has suggested possible solutions such as user refunds or liquidity reinjection, investors remain skeptical. With $60 million reportedly locked in liquidity pools, the fallout from the LIBRA collapse is far from over.
This incident underscores the need for due diligence when engaging with new crypto projects. Especially those with political affiliations or rapid price surges driven by celebrity endorsements.
The LIBRA and MELANIA token debacle has set the stage for broader discussions on regulation and accountability in the crypto space. If any legal action will be taken against the involved parties remains to be seen. However, the impact of these revelations will undoubtedly reverberate throughout the industry for months to come.
