Jupiter Exchange, a decentralized exchange, is under scrutiny following the collapse of the LIBRA token, a Solana-based meme coin endorsed by Argentine President Javier Milei.
Jupiter Exchange, a decentralized exchange, is under scrutiny following the collapse of the LIBRA token, a Solana-based meme coin endorsed by Argentine President Javier Milei. The token experienced a dramatic rise, but just hours after its launch, it lost over 90% of its value, raising suspicions of insider trading.
Jupiter, which was aware of the upcoming launch two weeks prior, maintains that its team had no specific details about the token's release. The exchange initially learned about the launch from Kelsier Ventures and only became fully aware of the project after Milei’s endorsement on social media. In a statement, Jupiter denied any involvement in insider trading, stating there was no evidence that employees had acted on non-public information.
Despite the denial, on-chain data revealed that certain wallets linked to insiders cashed out their holdings within hours of LIBRA's release, causing a massive market downturn. Blockchain analytics firm Bubblemaps had also flagged concerns about the token’s design before its launch, revealing that 82% of its supply was immediately sellable. These factors raised suspicions that the token was structured to benefit early insiders.
The fallout from LIBRA's crash has been severe. Milei, who had publicly endorsed the project, is now facing political fallout, including calls for impeachment. His office has clarified that he had no direct involvement in the project’s development and was introduced to it by KIP Protocol, a technology group. Milei has since deleted his endorsement post and requested an investigation by Argentina’s Anti-Corruption Office to determine if any government officials, including himself, acted improperly.
Jupiter emphasized that its employees were not involved in the dealings between Milei and market makers and noted that its founder, Meow Jupiter, had no prior knowledge of the specifics surrounding the launch. The exchange also expressed frustration over the impact of the incident on traders, calling the collapse “brutal.”
LIBRA’s crash has drawn broader attention to the risks associated with meme coins, particularly those endorsed by public figures. Critics, including Benjamin Cowen, CEO of ITC Crypto, have questioned the ethics of listing such tokens, pointing to concerns about market manipulation and the speculative nature of these assets. As LIBRA now trades at a fraction of its peak value, the incident has raised further concerns over the role of celebrity-backed projects in the cryptocurrency market.
The LIBRA debacle continues to unfold, with investigations ongoing and regulators considering how to handle the volatile world of meme coins and the responsibilities of exchanges and public figures involved in their promotion.
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