Author: Alex Liu, Foresight News

On-chain clues source: Bubblemaps

Recently, the crypto community has been in a heated discussion about "insider manipulation" surrounding the LIBRA token briefly endorsed by Argentine President Javier Milei and the MELANIA token associated with US First Lady Melania Trump. Blockchain data analysis firm Bubblemaps, through cross-chain transfer records and time pattern analysis, has for the first time revealed on-chain evidence that the behind-the-scenes teams of these two projects are the same group, and they have profited over $100 million through "sniping trades" and liquidity draining.

Background: From Presidential Endorsement to Collapse Controversy

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, causing market frenzy. However, within hours of the token's launch, the project team withdrew $87 million of USDC and SOL from the liquidity pool, causing the price to plummet over 80%. Milei later deleted the tweet and launched an anti-corruption investigation, but had already caused massive losses to investors.

Data source: GMGN

The project team internally shifted blame: KIP Protocol claimed to only be responsible for technical oversight, while market maker Kelsier Ventures' Hayden Davis blamed the presidential team for "temporarily reneging" and causing the panic.

The "Political Gimmick" of the Melania Token

In January 2025, the Melania token endorsed by Melania Trump surpassed a $10 billion market cap on its launch day, but subsequently collapsed rapidly due to insider dumping, with its market cap shrinking to less than $2 billion. Its model was highly similar to LIBRA, relying on celebrity effect to attract retail investors, and then harvesting through liquidity draining.

Data source: GMGN

Evidence: The "Harvesting Chain" Controlled by the Same Team

Bubblemaps' analysis revealed the following chain:

The "Self-directed Performance" of the Melania Token

Address P5tb4 profited $2.4 million by sniping the Melania token, and then transferred the funds through a cross-chain protocol (CCTP) to 0xcEA, which was proven to be an address associated with the creators of the Melania token.

This team used insider information to buy the tokens in advance, and then sold at the price peak, forming a typical "pump and dump" pattern.

The "Same Playbook" of the Libra Token

The 0xcEA address appeared again, providing funding support to the creator of the Libra token, DEfcyK, and using multiple associated wallets to conduct "front-running trades" on Libra, profiting $6 million. Meanwhile, the Libra team withdrew $87 million from the liquidity pool, further exacerbating the collapse.

On-chain data shows that the wallets that early-purchased Libra highly overlapped with those of the Melania token, and they are all associated with Rug Pull projects like TRUST, KACY, and VIBES, indicating that the same group has been manipulating multiple tokens for a long time.

The "Irrefutable Evidence" of Cross-chain Fund Flows

Through analyzing on-chain records on Solana, Avalanche, and other chains, Bubblemaps found that the 0xcEA address frequently used cross-chain protocols to transfer funds, obscuring the true destination. For example, the profits from the Melania token were converted to USDC through CCTP and then flowed into the creator's wallet of Libra.

Affiliates and Interest Network

Key Figures and Institutions

Kelsier Ventures: Accused of being the market maker for Libra, its founder Hayden Davis and his family (father Tom Davis, brother Gideon Davis) have been called a "family-style criminal group" by crypto KOLs.

KIP Protocol: Although denying involvement in token issuance, its representative Julian Peh was hinted by Hayden Davis to be a scapegoat.

The Gray Chain of "Celebrity Endorsement"

Members of the Milei government were exposed to have received bribes to promote the token. For example, Milei's close associate received $5 million to facilitate the president's promotion of LIBRA.

Community Reflection and Calls for Regulation

The "Trust Crisis" in the Crypto Community

Developer Farokh called for exposing the list of all KOLs who received marketing fees, while KOL Dave Portnoy admitted to having inside information, further revealing the industry's corruption.

The founder of Argentina's Lambda Class pointed out that such incidents have severely damaged the reputation of the country's crypto industry, with many honest builders being implicated.

Urgent Need for Regulation and Transparency

The Argentine government has set up a cross-departmental investigation team, integrating financial, anti-money laundering and other agencies to hold the perpetrators accountable.

Industry experts call for strengthening the application of on-chain monitoring tools and formulating disclosure rules for celebrity-backed tokens, to reduce information asymmetry.

Greed Game and Warnings

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

• Beware of "politically endorsed" tokens: Celebrity endorsement is often a short-term speculative signal, not a value support.
• Strengthen on-chain investigative capabilities: Ordinary investors can track large wallets and fund flows through tools to identify suspicious patterns.
• Promote industry self-regulation: Project teams need to publicly disclose token distribution and liquidity management plans to reduce information black boxes.

This drama may just be the tip of the iceberg, but only with transparency and accountability can we clear the obstacles for the long-term development of the crypto ecosystem.