Viva la Libertad Project $LIBRA Token Launch Exploited by Insiders

The Viva la Libertad project released its $LIBRA token on the Solana blockchain during the February 14 launch. During its first hour, the token reached a $1.16 billion market capitalization before achieving a $4.5 billion full diluted value.

The Viva la Libertad project released its $LIBRA token on the Solana blockchain during the February 14 launch. During its first hour, the token reached a $1.16 billion market capitalization before achieving a $4.5 billion full diluted value. The sudden price rise lasted only a short time before $LIBRA experienced a 95% loss which wiped out $280 million from the wallets of 75,000 traders. The market manipulation together with insider trading accusations has earned the event the name ‘Cryptogate.’

Major support came from Argentine President Javier Milei while the launch gained the backing of Web3 investment firm Kelsier Ventures. Blockchain records show that selected wallets owned by Kelsier Ventures alongside other insiders created more than $110 million in profit by participating in liquidity provision and early token acquisitions. The cryptocurrency community reacted with strong outrage after the losses which generated accusations of fraud and requests for the federal investigation of the token launch.

Insider Trading Allegations and Market Manipulation

After the token collapse numerous people began supporting claims which suggested organized market control activities. The available evidence shows that company insiders bought many tokens before releasing them to the public marketplace.

Aggressive entities who purchased the tokens first gained exclusive access to conduct beneficial trades then sold their holdings above market value to the incoming retail investor wave. The sell-off started when President Milei removed his social media endorsement about the tokens shortly after retail investors had bought them through his public recommendation.

CEO Hayden Davis from Kelsier Ventures had connections to two past token releases including SMELANIA by First Lady Melania Trump. Research evaluating Davis’ activities in both token launches reveals major weaknesses of existing token launch processes and shows how powerful figures can modify market trends.