How did a meme token backed by a world leader soar to a $1.16 billion market cap, only to crash by 95% within hours? A new report published on Friday by DWF Labs sheds light on the launch and collapse of $LIBRA. Libra ( LIBRA ) is a meme token on Solana that skyrocketed to a market cap of $1.16 billion within its first hour, only to lose over 95% of its value shortly after. The token’s collapse erased more than $280 million from approximately 75,000 traders, raising serious questions about insider trading and market manipulation. The incident, known as “Cryptogate,” has drawn political and financial heavyweights into the controversy, including Argentinian President Javier Milei and Web3 investment firm Kelsier Ventures. Read more: LIBRA coin team explored Nigeria for meme coin launch before the Javier Milei scandal Allegations of insider trading and market manipulation According to DWF’s report, allegations have surfaced that insiders were given access to $LIBRA tokens before the public launch. Kelsier Ventures’ wallets reportedly made over $110 million from liquidity provision and early sniping of the token. The scandal has triggered political backlash for President Milei, with accusations of fraud and calls for a federal investigation and in some cases a resignation. The DWF report also connects Kelsier CEO Hayden Davis to another high-profile token launch which also has a political connection: United States First Lady Melania Trump’s ( MELANIA ) token. Following the launch of tokens such as $MELANIA and $LIBRA , focus has turned to a need for more transparent and equitable token launch mechanisms in the crypto market. This edition of our institutional report 'A Presidential Guide To Token Launches' examines: ✅ The history of… pic.twitter.com/5Liroimyuz — DWF Labs (@DWFLabs) March 14, 2025 Restoring trust in token launches DWF Labs’ analysis could be seen as a warning sign associated with token launch mechanisms. More advanced approaches to launches, notably Dutch auctions and Liquidity Bootstrapping Pools, would help level the playing field for smaller investors. Regardless, the $LIBRA and $MELANIA scandals makes it clear that insider access and market manipulation is an unfortunate reality despite improved launch mechanisms. DWF Labs argues that improved oversight, mandatory pre-launch disclosures, and advanced anti-manipulation measures are steps needed to take to restore order in the market. You might also like: Solana meme coins suffer $15b wipeout, insiders and snipers dump
