Based on what they found, a Solana-based bank called “0xcEA” was crucial to both token launches. According to reports, this wallet got in on the Melania token’s launch on January 19, making $2.4 million before moving the money to another wallet on the Avalanche blockchain. More research showed that the same bank was also used for the launch of the Libra token, which made an even bigger profit of $6 million using the same methods.
The Bubblemaps team found a number of cross-chain funding and transaction paths that connect these two projects. Based on what they found, it looks like the person who made the Melania token or someone in their group took advantage of the market by using inside information. The Libra token appeared to employ the same tactic. Reports say that key insiders withdrew over $107 million, which caused the value to drop by 94% in just hours of launch.
As a result of investors’ huge losses, President Javier Milei is now facing political anger and fraud accusations. This is because he backed the Libra token soon after it came out. Bubblemaps has also connected the same wallet address to other well-known pump-and-dump schemes. For example, they have linked it to a fake Robinhood (HOOD) token that had a market cap of $120 million before it crashed to $12.5 million.
Insider trading is becoming more common in the crypto space, so analysts tell investors to be careful when dealing with newly launched tokens. Bubblemaps is investigating how big these schemes are and calling for openness and responsibility in the fast-changing memecoin market.
Investigators at Bubblemaps who study blockchains have found strong ties between the groups that created the Libra and Melania memecoins. Their research shows a pattern of insider manipulation, where important players took advantage of start events to make a lot of money. “0xcEA,” a wallet address, was crucial to both projects because it was used for cross-chain transfers to hide activities. The sudden failure of the Libra token, which lost $107 million, has led to fraud claims against President Javier Milei of Argentina. This new information shows that people are becoming more worried about pump-and-dump plans in the cryptocurrency market.
