The Libra memecoin is in hot water, and it’s a big mess involving politics, fraud accusations, and a possible parallel project in Nigeria.
The Argentina Connection
At the center of the storm is Argentine President Javier Milei. He’s accused of promoting Libra, a memecoin supposedly designed to fund Argentina’s development. It quickly reached a $4.5 billion valuation, but things went south fast. It turns out that a whopping 95% of the coins were controlled by insiders and the development team. This led to a massive price crash and fraud charges against Milei. US law firms are now lining up to sue him, and impeachment talks are swirling in Argentina.
Kelsier Ventures and the Web of Connections
American firm Kelsier Ventures, and its CEO Hayden Davis, are also deeply involved. Davis admitted the risks of memecoins and the conflicts of interest in the industry. Adding fuel to the fire, Davis also worked on Melania Trump’s memecoin, MELANIA. Transaction records show links between the wallets of both projects. This raises serious questions about Kelsier Ventures’ involvement in other politically-connected memecoins.
Nigeria’s Shadowy Project
Reports suggest Kelsier Ventures was secretly developing another memecoin on the Solana blockchain with members of the Nigerian administration. While there’s no direct evidence implicating President Bola Tinubu, discussions with his team show the project was far along. The potential for a major scandal in Nigeria is very real.
Ripple Effects on Solana
The Libra debacle is impacting Solana, the blockchain it was built on. Since Libra’s launch, Solana has seen a downturn, with many DeFi tokens dropping significantly in value. Competitors like Ethereum and Binance Coin are now outperforming Solana, raising concerns about the long-term effects of this scandal.
