Author: Alex Liu, Foresight News

On-chain Source: Bubblemaps

Recently, a heated discussion about "insider manipulation" has erupted in the crypto community regarding the brief endorsement by Argentine President Javier Milei of the LIBRA token and the association of former US First Lady Melania Trump with the MELANIA token. Blockchain data analytics company Bubblemaps has uncovered, for the first time with on-chain evidence, that the behind-the-scenes teams of these two projects are actually the same group of people. They profited over $1 billion through tactics such as "sniper trades" and liquidity rug pulls, based on cross-chain transfer records and time pattern analysis.

Background: From Presidential Endorsement to Controversial Collapse

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, igniting market frenzy. However, shortly after the token launched, the project team withdrew $87 million worth of USDC and SOL from the liquidity pool within hours, causing a price drop of over 80%. Milei subsequently deleted the tweets and initiated an anti-corruption investigation, but significant investor losses had already occurred.

Market Data Source: GMGN

The internal blame game within the project team unfolded: KIP Protocol claimed responsibility only for technical oversight, while Hayden Davis of market maker Kelsier Ventures blamed the presidential team for causing panic with a "last-minute flip-flop."

The "Political Ploy" of the Melania Token

In January 2025, the Melania token endorsed by Melania Trump saw its market value surpass $10 billion on the first day of launch. However, it quickly collapsed due to insider selling, shrinking its market cap to less than $2 billion. Its pattern closely resembled that of LIBRA, relying on celebrity influence to attract retail investors and then conducting a liquidity rug pull to harvest gains.

Market Data Source: GMGN

Evidence: "Rug Pull Chain" Orchestrated by the Same Team

Bubblemaps' analysis revealed the following chains:

Melania Token's "Inside Job"

Address P5tb4 profited $2.4 million from sniper attacking the Melania token, then transferred the funds to 0xcEA via a cross-chain transfer protocol (CCTP). The latter was confirmed to be the creator's associated address of the Melania token.

The team utilized insider information to buy the token early and sell at the price peak, establishing a typical "pump and dump" pattern.

Libra Token's "Same Playbook"

Address 0xcEA reappeared, providing funding support to Libra token's creator DEfcyK and conducting "front-running transactions" on Libra through multiple associated wallets, earning $6 million. Simultaneously, the Libra team withdrew $87 million from the liquidity pool, further exacerbating the collapse.

On-chain data shows that early wallets that bought into Libra heavily overlapped with Melania token holders and are all linked to Rug Pull projects like TRUST, KACY, VIBES, indicating the same group has been manipulating multiple tokens for an extended period.

"Smoking Gun" of Cross-Chain Fund Flows

By analyzing on-chain records of Solana and Avalanche, Bubblemaps uncovered that the 0xcEA address frequently used cross-chain protocols to obfuscate fund flows. For instance, profits from the Melania token, converted to USDC via CCTP, flowed into the wallet of Libra's creator.

Partnership and Interest Network

Key Figures and Institutions

Kelsier Ventures: Accused of being the liquidity provider for Libra, its founder Hayden Davis' family (father Tom Davis, brother Gideon Davis) has been referred to as a "family crime syndicate" by a crypto KOL.

KIP Protocol: Despite denying involvement in the token issuance, its representative Julian Peh has been implied by Hayden Davis as a scapegoat.

The "Celebrity Endorsement" Gray Chain

Members of the Milay government have been exposed for taking bribes to promote token projects. For example, a close aide of Milay received $5 million to facilitate the president's endorsement of LIBRA.

Community Reflection and Regulatory Calls

The "Trust Crisis" in the Crypto Community

Developer Farokh called for the disclosure of a list of all KOLs receiving marketing fees, while KOL Dave Portnoy revealed possessing insider information, further exposing industry corruption.

Argentina's Lambda Class founder pointed out that such events seriously damage the country's crypto industry reputation, implicating many integrity builders.

The Urgent Need for Regulation and Transparency

The Argentine government has established a cross-departmental task force to hold accountable financial, anti-money laundering, and other institutions.

Industry experts call for enhanced application of on-chain monitoring tools and the establishment of disclosure rules for celebrity-endorsed tokens to reduce information asymmetry.

The Game of Greed and Caution

The Libra and Melania token events have revealed the darkest side of the crypto market: a triple trap of celebrity glamour + insider manipulation + liquidity fraud. Bubblemaps' on-chain analysis not only provides accountability evidence for victims but also sounds the alarm for the community:

· Be wary of "celebrity-endorsed" tokens: Celebrity endorsements are often short-term hype signals rather than value support.

· Strengthen on-chain monitoring capabilities: Ordinary investors can use tools to track large wallets and fund flows, identifying suspicious patterns.

· Promote industry self-regulation: Projects should disclose token distribution and liquidity management plans to reduce information asymmetry.

This drama may only be the tip of the iceberg, but only with transparency and accountability can we remove barriers to the long-term development of the crypto ecosystem.

Original article link: Link