Blockchain analysts have uncovered links between the LIBRA meme coin and other questionable crypto projects, including the official token of Melania Trump.

These findings have raised further concerns on LIBRA particularly after its brief endorsement by Argentina’s President Javier Milei.

Suspicious Connections Between LIBRA And MELANIA

On February 16, Chaofan Shou, co-founder of Fuzzland, alleged that LIBRA’s market maker operates from Delhi and was also involved in the MELANIA meme coin.

Shou shared wallet data suggesting that the same entity controlled both projects, fueling suspicions of coordinated insider activity. He further linked the LIBRA team to tokens like Enron and OGME, which followed a similar pattern of price manipulation.

These projects experienced rapid price increases driven by insider trading and automated bots, followed by sudden sell-offs that left retail investors with losses. This pattern resembles pump-and-dump schemes designed to exploit traders.

The MELANIA token, launched just before Donald Trump’s second-term inauguration, briefly surged to a $2 billion market cap before crashing below $200 million.

LIBRA followed a similar trajectory. After receiving public support from President Milei, the token saw a surge in investments. However, insiders reportedly withdrew $107 million soon after, leading to its collapse.

Following the fallout, Milei distanced himself from the project, triggering accusations of market manipulation. Some critics have even called for his impeachment, citing the incident as a financial and political scandal.

LIBRA Insiders Reject Fraud Accusations

Despite the controversy, KIP Protocol, an entity linked to LIBRA, has denied any wrongdoing.

Julian Peh, KIP’s CEO, stated that all funds remain on-chain and accounted for. He also clarified that KIP had no role in the token’s launch, attributing responsibility to Kelsier, the project’s market maker.

“KIP has taken on alot of FUD today, including with threats to me and my staff, but we were not involved in the launch, we did not handle any tokens or SOL. KIP publicly acknowledged its role in the project (though not in the token issuance) because we were already listed on the website and believed in the initiative’s potential,” KIP said.

Meanwhile, Hayden Davis of Kelsier blamed President Milei and his team for investors’ losses. He argued that meme coin investments rely heavily on trust and endorsements.

When Milei’s team deleted their promotional posts, panic selling ensued, leading to a sharp market decline.

Nevertheless, he stated that his team still believes in the project and plans to reinvest $100 million in it. So, instead of transferring the assets to President Milei’s associates or KIP, Kelsier plans to reinvest the funds into LIBRA and burn all acquired tokens.

“I am proposing to reinvest 100% of the funds under my control, as much as $100 million, back into the Libra Token and burn all bought supply. Unless a more viable alternative is presented, I intend to begin the process of executing on this plan within the next 48 hours,” Davis stated.

The LIBRA controversy highlights the risks associated with speculative meme coins, especially those tied to high-profile figures. While supporters insist the project remains viable, investigators continue to examine its connections to potential market manipulations.

Ethereum (ETH) price has remained in a consolidation phase, trading below $3,000 since February 2. Over the past weeks, indicators like RSI, DMI, and EMA suggest that ETH lacks strong momentum, with neither buyers nor sellers taking full control.

The narrowing gap between its EMA lines hints at a potential shift, but ETH must overcome key resistance levels to regain bullish momentum. Meanwhile, if support levels fail to hold, a deeper correction toward $2,160 could be on the table.

Ethereum RSI Has Been Neutral For Two Weeks

Ethereum Relative Strength Index (RSI) is currently at 54.2, staying neutral since February 3. RSI measures price momentum, with values between 30 and 70 indicating a balanced market.

Ethereum has remained within this range, suggesting neither buyers nor sellers have taken control. This means ETH has yet to enter an overbought zone above 70 or an oversold zone below 30.

RSI ranges from 0 to 100, with key levels at 30 and 70. A reading above 70 signals overbought conditions, while below 30 suggests oversold levels. At 54.2, ETH is in neutral territory, meaning price action lacks strong momentum.

For ETH price to reach $3,000, the RSI would likely need to move toward 60 or higher, indicating increased buying pressure. A push above 70 could signal strong bullish momentum, helping ETH break key resistance levels.

ETH DMI Shows the Lack of a Clear Direction

Ethereum Directional Movement Index (DMI) shows its Average Directional Index (ADX) at 11.8, steadily declining since February 12, when it was at 32.8.

ADX measures trend strength, with values above 25 indicating a strong trend and below 20 suggesting a weak or no trend. The steady decline signals fading momentum, meaning ETH lacks a clear directional push.

ADX is part of the DMI, which also includes the +DI (positive directional indicator) and -DI (negative directional indicator). +DI is at 19.3, down from 25.2 two days ago, while -DI is at 17.2, down from 18.8.

This suggests both bullish and bearish pressures are weakening. For ETH to regain $3,000, ADX would need to rise above 20, signaling stronger trend momentum, while +DI would have to climb above -DI with a wider gap, indicating renewed bullish strength.

ETH Price Prediction: Will Ethereum Return To $3,000 In February?

Ethereum price has been trading between $2,800 and $2,550 since February 7. Its EMA lines still show a bearish outlook, as short-term lines remain below long-term ones.

However, the gap between them is narrowing, suggesting a potential shift in momentum. For ETH to reach $3,000 in February, it must first break the $2,800 resistance and then sustain a move above $3,020. If momentum strengthens, ETH could even test $3,442, a level last seen in late January.

On the downside, if Ethereum retests the $2,551 support and fails to hold, further declines could follow.

Losing this key level may open the door for a drop toward $2,160, a significantly lower support.

Argentina’s President, Javier Milei, is facing intense scrutiny after endorsing a little-known cryptocurrency, LIBRA.

His public support briefly drove up the token’s value before it plummeted, triggering accusations of misconduct and potential legal violations.

On February 14, President Milei promoted the LIBRA meme coin on X, claiming it could boost Argentina’s economy and benefit small businesses.

His statement triggered a surge in the token’s price, with the market cap hitting over $4 billion in hours. This surge allowed insiders to cash out over $100 million in profits.

However, the rally was short-lived. The meme coin didn’t have any tokenomics; the website itself was created hours before the launch, and over $87 million was cashed out in the first three hours.

The token’s value crashed soon after, indicating a classic pump-and-dump scheme.

“Within minutes of the launch, multiple large holders began liquidating millions of USD worth of LIBRA. This included gains of +$4 million or more as LIBRA rose to $4.6 billion in market cap. After the top was set at 5:40 PM ET, the coin fell in a literal straight-line,” wrote The Kobeissi Letter.

This resulted in mounting criticism that led Milei to delete his post and attempt to backtrack. The president stated that he had not fully understood the project.

Also, he later clarified that, after learning more, he chose to stop promoting it.

“I was not aware of the details of the project and after becoming informed, I decided not to continue giving it exposure (that’s why I deleted the tweet),” the president stated.

Argentina’s presidential office attempted to contain the fallout, downplaying the incident as a routine business promotion tied to blockchain financing.

However, the officials acknowledged that Milei had met with Hayden Mark Davis, a figure linked to the KIP Protocol, which is behind LIBRA’s infrastructure.

Despite this, the government has announced an investigation into whether any officials, including Milei himself, had acted improperly. The probe will also examine whether KIP Protocol, the entity linked to LIBRA, engaged in unlawful activities.

Additionally, the president has ordered the formation of an Investigation Task Unit (UTI) under the presidency. This unit, composed of financial, crypto, and anti-money laundering experts, will examine LIBRA’s launch and those involved.

“All information gathered during the investigation will be handed over to the courts to determine whether any of the companies or individuals linked to the KIP Protocol project committed a crime,” the statement added.

Political Fallout and Impeachment Threats

The controversy has escalated beyond the crypto space, sparking a political crisis. Critics argue that Milei’s reckless promotion of a speculative asset led to financial losses for investors and the public.

Argentine lawmaker Gabriela Estevez accused him of engaging in a classic pump-and-dump scheme. They described it as a severe financial fraud that manipulated market prices for personal gain.

“What the President did is called Pump and dump, and it’s a serious financial fraud. The ‘crypto’ creators buy large amounts of it at its initial price. Then, they artificially inflate its value by attracting more people with lies about its potential. When the price goes up, the ‘crypto’ creators sell their holdings, causing the price to crash and leaving other investors with losses,” Estevez remarked.

The backlash has also led to impeachment threats. A political faction has initiated proceedings, calling the scandal unprecedented in Argentina’s history.

“Our block of National Deputies decided to move forward with the presentation of an impeachment request against the President of the Nation,” Diputados UP wrote on X.

Buenos Aires Governor Axel Kicillof echoed these concerns, labeling the incident a large-scale financial fraud. He warned that investors in Argentina and beyond had been misled, comparing the situation to a typical cryptocurrency pyramid scheme.

Overall, this is a major reflection of how political endorsement, since the TRUMP launch has made the meme coin market extremely vulnerable. Previously, Ethereum co-founder Vitalik Buterin also warned that more political meme coins could harm the market’s progression.

Since Trump’s meme coin launch, several scammers have launched and pumped fake tokens based on other political leaders. LIBRA is just another latest example of the current extreme risks of this space.