Amid the ongoing controversy surrounding the Libra token’s dramatic 95% crash, KIP Protocol has publicly distanced itself from the project, refuting claims that it played any role in the token’s launch or management.
In a statement released on February 24 via X, the web3 firm emphasized that it was not involved in creating, promoting, or selling the Libra token or the Viva La Libertad project. The firm mentioned it was invited in mid-February to explore financing opportunities for Argentinian SMEs but had no prior connections to the token. KIP Protocol also stated that it received no payments and did not control any wallets related to the token’s launch.
The scandal intensified after YouTuber Stephen Findeisen, known as Coffeezilla, interviewed Hayden Davis (also called Kelsier), a key figure behind the Libra project. Initially, Davis referred to himself as a “facilitator.” Still, he later revealed that he controlled $100 million associated with the project, claiming it was used for l“leverage with certain groups and parties.”
During the interview, Davis described the meme coin market as an “unregulated casino” and advised retail investors to thoroughly educate themselves before participating. He also attempted to divert attention from himself as one of Libra’s key creators by naming others such as Mauricio Novelli, Manuel Godoy, and KIP Protocol as significant contributors.
KIP Protocol has rejected claims regarding its involvement in a token launch, stating it was used as a cover for others who managed the initiative. While KIP acknowledged posting about the project on X after the token’s launch, it clarified that it has no formal relationship with President Javier Milei except for a brief meeting in October 2024.
The Libra token, which was initially promoted by Milei, has faced intense scrutiny following its collapse. As accusations continue to emerge, uncertainty remains over who was truly responsible for its development and whether further legal or financial consequences will follow for those involved.
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