- विज्ञापन -
Delhi: The LIBRA token has shocked the cryptocurrency world after a massive insider trading scandal that led to a $4.5 billion crash. Launched in January 2025 with high hopes, the token quickly gained popularity, especially after it was endorsed by Argentina’s President Javier Milei. Its price soared by 3000%, hitting an all-time high of $4.5, and its valuation reached $4.5 billion in just hours. However, the excitement was short-lived as insiders manipulated the token’s market, causing significant losses for many investors.
The Insider Trading and Crash
Shortly after the token’s launch, it was revealed that just a few individuals owned 82% of the LIBRA tokens. The situation worsened when the LIBRA team withdrew $87 million from the liquidity pool, leaving investors with virtually no value. As if that wasn’t enough, insiders sold off their holdings, pulling out another $107 million, causing the token’s value to plummet by nearly 94%. This sudden crash left many retail investors in significant financial distress.
MELANIA Coin’s Alleged Involvement
The scandal deepened with new findings from Bubblemaps, an on-chain analytics platform. They allege that the MELANIA coin team, which had already faced similar insider trading issues, is behind the LIBRA token launch. According to Bubblemaps, a wallet linked to the MELANIA coin team made a $2.4 million profit from the LIBRA token and transferred those funds to another wallet connected to the creator of MELANIA. This suggests a connection between the two tokens and possible coordinated manipulation.
The Alleged Role of Key Figures
Further reports indicate the involvement of individuals like Dave Portnoy, who had previously been linked to the JAILSTOOL token’s massive rally. Portnoy admitted to receiving coins from the LIBRA team but claimed he returned them. Despite this, some suspect that figures like Portnoy and other Key Opinion Leaders (KoLs) might have been aware of the scam and played a role in promoting the token.
Davis Defends the Token’s Launch
In a recent interview, Hayden Davis, one of the individuals behind LIBRA, denied claims of a rug pull. He stated that the situation was a result of a “plan gone wrong,” not intentional fraud. Davis explained that $60 million of liquidity remains locked and argued that the $100 million still in an account under his control could be used to remedy the situation.
The collapse of the LIBRA token serves as a stark reminder of the risks of insider trading and market manipulation in the cryptocurrency world.
