Recently, the crypto community has been in a heated discussion about "insider manipulation" surrounding the LIBRA token briefly endorsed by Argentine President Javier Milei and the MELANIA token associated with US First Lady Melania Trump. Blockchain data analysis firm Bubblemaps, through cross-chain transfer records and time pattern analysis, has for the first time exposed on-chain evidence that the behind-the-scenes teams of these two projects are the same group, and they have profited over $100 million through "sniping trades" and liquidity draining.
Background: From Presidential Platform to Collapse Controversy
The "Presidential Drama" of the Libra Token
Argentine President Milei met with project technical advisor Hayden Davis on January 30, 2025 and promoted the Libra token on social media, sparking market frenzy. However, within hours of the token's launch, the project team withdrew $87 million in USDC and SOL from the liquidity pool, causing the price to plummet by over 80%. Milei later deleted the tweets and launched an anti-corruption investigation, but had already caused massive losses to investors.
The project team internally shifted blame: KIP Protocol claimed to be only responsible for technical oversight, while Kelsier Ventures' Hayden Davis accused the presidential team of "temporary reneging" and causing the panic.
The "Political Gimmick" of the Melania Token
In January 2025, the Melania token backed by Melania Trump had a market cap of over $10 billion on its first day of launch, but then quickly collapsed due to insider dumping, with its market cap shrinking to less than $2 billion. Its model was highly similar to LIBRA, relying on celebrity effect to attract retail investors, and then harvesting through liquidity draining.
Evidence: The "Harvesting Chain" Controlled by the Same Team
Bubblemaps' analysis revealed the following chain:
The "Self-directed Performance" of the Melania Token
Address P5tb4 profited $2.4 million by sniping the Melania token, and then transferred the funds through a cross-chain protocol (CCTP) to 0xcEA, which was proven to be an address associated with the creator of the Melania token.
The team used insider information to buy the token in advance, and then sold at the price peak, forming a typical "pump and dump" pattern.
The "Same Playbook" of the Libra Token
The 0xcEA address appeared again, providing funding support to the creator of the Libra token DEfcyK, and using multiple associated wallets to "front-run" Libra, making a profit of $6 million. Meanwhile, the Libra team withdrew $87 million from the liquidity pool, further exacerbating the collapse.
On-chain data shows that the wallets that early purchased Libra highly overlapped with those of the Melania token, and they are all associated with Rug Pull projects such as TRUST, KACY, and VIBES, indicating that the same group has been manipulating multiple tokens for a long time.
The "Irrefutable Evidence" of Cross-chain Fund Flows
By analyzing on-chain records on Solana, Avalanche and other chains, Bubblemaps found that the 0xcEA address frequently used cross-chain protocols to transfer funds, obscuring the real destination. For example, the profits from the Melania token were converted to USDC through CCTP and then flowed into the creator's wallet of Libra.
Related Parties and Benefit Network
Key Figures and Institutions
Kelsier Ventures: Accused of being the market maker for Libra, its founder Hayden Davis' family (father Tom Davis, brother Gideon Davis) has been called a "family-style criminal group" by crypto KOLs.
KIP Protocol: Although denying involvement in token issuance, its representative Julian Peh was hinted by Hayden Davis to be a scapegoat.
The Gray Chain of "Celebrity Endorsement"
Members of the Milei government were exposed to have taken bribes to promote the token platform. For example, Milei's close associate received $5 million to facilitate the president's promotion of LIBRA.
Community Reflection and Regulatory Calls
The "Trust Crisis" in the Crypto Community
Developer Farokh called for exposing the list of all KOLs who received marketing fees, while KOL Dave Portnoy admitted to having inside information, further exposing industry corruption.
The founder of Argentina's Lambda Class pointed out that such incidents have severely damaged the reputation of the country's crypto industry, with many honest builders implicated.
Urgent Need for Regulation and Transparency
The Argentine government has set up a cross-departmental investigation team, integrating financial, anti-money laundering and other agencies to hold the parties accountable.
Industry experts call for strengthening the application of on-chain monitoring tools and formulating disclosure rules for celebrity-backed tokens, in order to reduce information asymmetry.
The Greed Game and Warnings
The Libra and Melania token incidents have exposed the darkest side of the crypto market: the triple trap of celebrity halo + insider manipulation + liquidity fraud. Bubblemaps' on-chain analysis not only provided evidence for the victims to seek accountability, but also sounded the alarm for the community:
· Be wary of "politically backed" tokens: celebrity endorsement is often a short-term speculative signal, not a value support.
· Strengthen on-chain investigative capabilities: ordinary investors can use tools to track large wallet addresses and fund flows, and identify suspicious patterns.
· Promote industry self-regulation: project teams need to publicly disclose token distribution and liquidity management plans, reducing information black boxes.
This drama may just be the tip of the iceberg, but only with transparency and accountability can we clear the obstacles for the long-term development of the crypto ecosystem.
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