Bubblemaps analysts have found evidence linking the launch of the LIBRA memecoin to the team responsible for the controversial Melania (MELANIA) token.
Their investigation suggests a pattern of market manipulation involving pump-and-dump schemes.
In a post on February 17, they expressed strong confidence that the same group or closely connected individuals are behind both projects, as indicated by their analysis of cross-chain transfers and timing patterns.
An investigation was sparked by the discovery of wallet address P5tb4, which made $2.4 million by sniping the Melania launch on January 19. This profit was transferred to wallet 0xcEA, associated with the Melania creator, using the USDC Cross-Chain Transfer Protocol (CCTP) to hide the transaction trail, raising suspicions that the creators sniped their token launch.
Further digging revealed that wallet 0xcEA was also involved in sniping LIBRA, resulting in $6 million in profits. The funds followed a similar route, passing through multiple addresses funded via CCTP. In total, the creators of these memecoins are believed to have made over $100 million using insider knowledge and sniping techniques to exploit the market.
Additionally, 0xcEA has been linked to other high-profile pump-and-dump projects, including the TRUST, KACY, and VIBES tokens and a fake Robinhood (HOOD) token. These tokens experienced significant market value increases followed by crashes, enabling creators to profit while investors lost.
Bubblemaps analysts warn that these findings highlight the growing risks within the memecoin space, urging caution for investors as these market manipulation tactics continue to emerge.
Meanwhile, Delaware-based Tuttle Capital has filed for leveraged ETFs focused on memecoins, including tokens associated with Trump and Melania. This makes Tuttle the first U.S. asset manager to propose ETFs targeting emerging digital assets. The firm seeks to launch ten 2x leveraged ETFs that aim to double the daily performance of various cryptocurrencies such as XRP, Solana, and Cardano. Leveraged ETFs offer increased potential returns and risks compared to traditional spot ETFs.
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