What is Libra Token Scam? Everything You Need To Know

Rug pull tactics caused the LIBRA token to plummet 94%, while recent revelations implicate the MELANIA coin team in the fraud. Here’s how.

Key Takeaways：

• After the team took $87 million out of the liquidity pool and insiders cashed out $107 million, the LIBRA token fell 94%.
• Given that the two share wallet transactions and profits, on-chain analysis indicates a connection between the MELANIA and LIBRA coins.
• Hayden Davis declined the LIBRA rug pull but agreed to participate in the MELANIA coin rollout and sniping.

The cryptocurrency community has been surprised by the LIBRA token and the $4.5 billion insider transaction. Additionally, the LIBRA crew took millions of dollars out of the cryptocurrency pool, which resulted in losses for almost all holders. Surprisingly, there are now further tremors due to the recent discovery and accusation of the MELANIA coin’s team responsible for the token’s crash. Let’s talk.

What Caused the $100M LIBRA Token Scam?

With the support of Argentina’s president, Javier Milei, the LIBRA token, which debuted on January 14, shot to prominence in the cryptocurrency market. During this time, the LIBRA price reached an all-time high of $4.5 after surging 3000%.

Its valuation reached $4.5 billion within hours after introduction, which is crucial. The situation quickly became worse, and insider trading amounted to $4.5 billion, following the discovery by Bubblemaps that just a small number of investors held 82% of the tokens.

Due to the LIBRA team’s decision to remove $87 million from the liquidity pool, investors are now stuck in a losing cycle. The sniper’s $107 million payout crashed the cryptocurrency by roughly 94%. But this is only scratching the surface, because there was a lot more going on behind the scenes of this catastrophe.

Members of the KoL community who were aware of this possible scam include Dave Portnoy, the mastermind behind JAILSTOOL’s 119,000% rally. The potential role of Portnoy in this rug pull was brought to light in a recent Lookonchain post. And most crucially, he came clean about having returned the coins he had received from the LIBRA crew.

The Bubblemaps article asserts that the LIBRA launch is being orchestrated by the MELANIA coin team, which raises significant questions over the latest findings.

A Disagreement Over the Melania and Libra Meme Coins

The LIBRA token launch and crash were allegedly orchestrated by the MELANIA team, according to the popular on-cain analytics tool Bubblemaps. One particular address, P5tb4, links the FOTUS MELANIA memecoin to the LIBRA, as revealed in a comprehensive Bubblemaps X post.

This is due to the fact that this particular address amassed almost $2.4 million in LIBRA coin revenues before transferring the entire sum to 0xcEA, a wallet associated with the developer of MELANIA. According to Bubblemaps, there is a deep relationship between the author of MELANIA and the 0xcEA. Included in it were the coss-chain transfers and the funding transaction.

Even more crucially, the analytics page exposed profit manipulation and snipping operations involving the MELANIA meme coin, which was also subject to insider trading and had risen to prominence before to the crisis.

Bubblemap’s claim that the MELAINA team was involved in the LIBRA token launch and swindle was confirmed in an interview with Coffeezilla. Who among KIP Protocols, Kelsier Ventures, and Hayden Davis possibly be responsible for this?

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Additional Research and Understanding

The 0xcEA was supposedly followed by the Bubblemaps team for weeks before they discovered transfers of funds between this wallet and the DEfcyK, the wallet of the LIBRA developers. This DEfcyK wallet notably withdrew $87M from the liquidity pool without informing holders.

In a recent interview with Coffeezilla, Hayden Davis—a key figure in the LIBRA token—claimed that the recent events are not a rug pull but rather the result of a scheme gone horribly wrong, causing hundreds of people to suffer significant losses.

Still, that’s not all. The 0xcEA allegedly made $6 million by stealing the LIBRA token and selling it through several domains, according to the reports. Moreover, this main address is associated with multiple additional coin releases, which is quite significant. Everything from TRUST and KACY to VIBES and $HOOD culminates in the same pump-and-dump schemes.

Token launches, value pumps, and profit dumps by these individuals were understandable given this.

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Conclusion

Some important discoveries regarding the LIBRA token scam have been revealed by the Bubbluemaps team. One of these is the link between the scam and the popular meme coin MELANIA. There was a liquidity problem at LIBRA, insider trading totaling $4.5 billion, and price manipulations backed by the Argentine president and KoL. While the group made over $100 million, regular people who invested their money lost everything.

Who is really responsible for these scams is the most pressing question at this point. He blames insiders alone in a recent interview with Hayden Davis. His main point is that the LIBRA token deception was an unintentional miscalculation.

Inquiring about his next move with the $100 million in the liquidity pool, Davis has left the victims wondering what will happen next. While this subject is definitely going to be addressed, investors will need to stay tuned for more updates.

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FAQs

What led to the crash of the LIBRA token?

After the LIBRA management withdrew $87 million from liquidity and insiders cashed out $107 million, the token plummeted.

What is the current state of the LIBRA token?

With an over 1000% drop from its peak of $4.5, LIBRA is now trading at $0.3829.

Is this fraud a rug-pull?

It’s a rug-pull scam because of the involvement of KoLs and the Argentina president’s endorsement, but Hayden Davis denied the allegations, calling it a botched scheme.

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