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## DWF Analysis Reveals Possible Privileged Trading Behind LIBRA Token’s Crazy Journey
DWF Labs unveiled a stunning analysis on Friday, scrutinizing the quick increase and devastating collapse of LIBRA token. How did a meme token, apparently endorsed by international figures, soar to a $1.16 billion market capitalization and then plummet by 95% in just hours?
Libra (LIBRA), a Solana-based meme token, burst onto the scene, achieving an incredible $1.16 billion valuation within the initial hour. However, the celebration didn’t endure. The token crashed, erasing over 95% of its worth and leaving approximately 75,000 traders with a combined $280 million in losses. This ignited fury and significant inquiries regarding market manipulation and potential privileged trading.
Called “CryptoGate,” the controversy has implicated some major players, including Argentinian President Javier Milei and Web3 investment company Kelsier Ventures.
### Claims of Market Rigging and Privileged Agreements
According to DWF’s analysis, rumors of privileged entry to LIBRA tokens *prior* to the public debut are growing stronger. Kelsier Ventures’ wallets supposedly earned over $110 million by obtaining the token early and supplying liquidity. The controversy has sparked a political uproar for President Milei, with accusations of deceit and even demands for his resignation and a federal inquiry.
The DWF analysis also links Kelsier CEO Hayden Davies to another politically sensitive and prominent token debut: the MELANIA token, named after former First Lady Melania Trump.
### Re-establishing Confidence in Token Debuts
DWF Labs’ analysis acts as a severe caution regarding the risks hiding within token debut mechanisms. More advanced techniques, such as Liquidity Bootstrapping Pools (LBPs) and Dutch Auctions, could assist in leveling the playing field for smaller investors.
However, let’s be honest: The LIBRA and MELANIA stories emphasize a harsh reality. Even with enhanced debut mechanisms, privileged entry and market rigging remain a constant danger in the crypto space.
DWF Labs highlights the importance of improved rules, required pre-launch releases, and sophisticated anti-manipulation tactics to bring back order to the marketplace. They think that these actions are vital for marketplace stability and honesty.
