LIBRA coin crashed within hours of what was seen as a successful launch.
LIBRA was endorsed by Argentina’s President Javier Milei.
One of its co-creators, Hayden Davis, has revealed insiders were given preferential access to buy early.
In a surprising twist to the already tumultuous saga of the LIBRA cryptocurrency, one of its co-creators, Hayden Davis, has come forward with allegations of insiders being given preferential access to purchase the token before its official market launch.
This claim emerged during an interview with investigative journalist Stephen Findeisen, known as Coffeezilla, shedding light on what Davis describes as an “insider’s game.”
LIBRA’s rapid rise and fall
LIBRA cryptocurrency was designed to leverage the buzz around blockchain technology and potentially stimulate economic growth in Argentina by funding small businesses and startups.
The token was developed by a team including Hayden Davis, under the banner of Kelsier Ventures, and with technical support from KIP Protocol, which was invited post-launch to manage the selection of funded tech projects. LIBRA was hosted on the Solana blockchain, known for its speed and low transaction fees, making it a popular choice for memecoin enthusiasts.
On February 14, 2025, Argentina’s President Javier Milei threw his weight behind LIBRA via a social media endorsement, describing it as a tool to “incentivize the growth of the Argentine economy.” The token’s value skyrocketed almost instantaneously, reaching a market cap of over $4 billion.
However, this meteoric rise was short-lived. Within hours, LIBRA’s value plummeted back to near zero, with over $87 million cashed out by insiders in the first three hours post-launch, according to financial analysts.
Javier Milei just DESTROYED the memecoin market:
Hours ago, Argentinian President Milei launched a memecoin, $LIBRA, for “the growth of their economy.”
Within 5 hours, over -$4.4 BILLION of market cap was erased.
Is this the biggest rug pull in history?
(a thread) pic.twitter.com/t4T69r851d
— The Kobeissi Letter (@KobeissiLetter) February 15, 2025
The collapse was attributed to the classic signs of a “rug pull,” where the token’s creators or insiders inflate and then abandon the project, leaving investors with significant losses.
Notably, the website associated with LIBRA, vivalalibertadproject.com, was registered on the same day as its launch, hinting at the rushed and potentially speculative nature of the project.
The Hayden Davis interview revelation
In his candid interview with Coffeezilla, Hayden Davis, also known as Kelsier, claimed that before LIBRA was publicly available, certain individuals at a private dinner in Washington, D.C., were allowed to buy 500 million tokens at a discounted price.
Davis described the crypto industry, particularly in this instance, as an “insider’s game,” where access to early, lucrative opportunities is not equitably distributed.
Davis further admitted his involvement in another project, MELANIA, implying that similar tactics were used there. His revelations paint a picture of a market where those with connections can manipulate outcomes for personal gain, significantly disadvantaging the average investor.
President Milei faces possible impeachment
The fallout from the LIBRA debacle has plunged President Javier Milei into a political maelstrom. Critics, including opposition leaders and legal experts, have accused Milei of fraud, pointing to his promotion of LIBRA which many saw as an endorsement of a speculative asset that led to investor losses.
The situation has escalated to the point where Argentine lawyers have filed fraud complaints in criminal court, arguing that the incident resembles a “rug pull” where investors are lured with promises only to see the value of their investments collapse.
The scandal has not only damaged Milei’s reputation but has also prompted calls for his impeachment. Political adversaries, including former President Cristina Fernández de Kirchner, have seized this opportunity to challenge Milei’s leadership, describing the incident as a betrayal of public trust.
The controversy has led to an official investigation by Argentina’s Anti-Corruption Office, examining whether Milei or any members of his administration acted improperly or knew about the token’s dubious foundations.
