The recent controversy surrounding the memecoin Libra (LIBRA) has sparked significant global attention, particularly following revelations about its alleged ties to prominent political figures and “questionable business practices.”
According to reports from The Big Whale, the team behind Libra was allegedly developing a parallel memecoin project in Nigeria and had established contact with the Nigerian presidential team. This project, described as being in “advanced stages,” is now clouded in uncertainty.
Fraud Charges Amid Libra Memecoin Scandal
At the heart of the issue is Argentine President Javier Milei, who has been accused of promoting the Libra memecoin. The project, intended to fund Argentina’s development, quickly gained traction, reaching a staggering $4.5 billion in fully diluted valuation.
However, it came under scrutiny when it became apparent that a substantial portion—95%—of the coin’s supply was unlocked for insiders and the development team. As the truth unraveled, the project’s value plummeted, leading to Milei facing fraud charges in Argentina.
In the wake of these developments, several US law firms, including Bruwick Law, have announced their intent to initiate class action lawsuits against Milei.
The opposition is also considering impeachment proceedings, alleging that Milei and his associates colluded with various crypto companies in a scandal involving hundreds of millions of dollars.
Kelsier Ventures, an American firm linked to the Libra project, has been thrust into the spotlight as its CEO, Hayden Davis, attempts to mitigate the fallout.
In a video interview, Davis acknowledged the inherent risks associated with memecoins and noted the “conflict of interest” prevalent within the sector.
Davis’s connections extend beyond Libra; he has also collaborated on Melania Trump’s recent memecoin, MELANIA. This connection was substantiated by Bubblemaps, which identified transactions linking the wallets of the MELANIA and Libra projects.
These revelations have raised further questions about potential involvement from Kelsier Ventures in other high-profile memecoins, including those tied to political figures.
Nigerian Administration Linked To Kelsier Ventures
In addition to the controversies surrounding Argentina, reports suggest that Kelsier Ventures was working on a memecoin project on the Solana (SOL) blockchain with members of the Nigerian administration.
While there is currently no evidence to suggest that Nigerian President Bola Tinubu was directly implicated, discussions involving his team indicate that the project was well advanced.
The Big Whale was unable to confirm communication with the Nigerian presidency, but the potential for further scandal looms large.
As the Libra situation continues to evolve, the implications for the Solana ecosystem are becoming increasingly apparent. Since the launch of Libra, the Solana blockchain has experienced a downturn, with many DeFi tokens dropping 10-20% in value.
Meanwhile, rival cryptocurrencies like Ethereum (ETH) and Binance Coin (BNB) have begun to outperform Solana, leading to speculation that the recent events may mark a significant turning point for the Solana network.
Featured image from DALL-E, chart from TradingView.com