On-chain analytics firms like Nansen and Lookonchain reported that wallets associated with the LIBRA memecoin project withdrew approximately $3.94 million in USDC from LIBRA’s liquidity pools on Solana-based DEXs.
These funds, combined with existing USDC holdings totaling around $57 million across the wallets, were then used to purchase 456,401 SOL at an average price of $135 per token—equating to a total spend of $61.59 million.
This move occurred amid a Solana price dip below $140, capitalizing on the lower entry point. The transaction addresses involved are: Libra Deployer wallet, held ~$13M USDC pre-move. Libra Wallet, held ~$44M USDC pre-move).
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Post-purchase, one wallet now holds 328,619 SOL, with the remainder distributed across the two. This isn’t an isolated event; earlier reports from November 17 noted a smaller $17M USDC-to-SOL swap 127,774 SOL at $133 each, suggesting a pattern of accumulation.
The LIBRA ScandalLIBRA, a Solana-based memecoin launched in early 2025, gained brief hype partly due to an endorsement from Argentine President Javier Milei but collapsed spectacularly. In its downfall.
Eight insider wallets extracted ~$107 million in liquidity, wiping out a $4 billion market cap in hours. A U.S. class-action lawsuit accused Kelsier Ventures and co-founders Gideon, Thomas, and Hayden Davis of misleading investors via rapid token launches and hype-driven pumps.
In May 2025, a federal judge froze $57.6 million in USDC tied to the project; this was lifted in August after ruling funds remained recoverable. Ongoing probes span multiple jurisdictions, including an Interpol Red Notice request for creator Hayden Davis, with transactions tracked across Arbitrum, Avalanche, and Solana.
This fits a broader pattern seen in memecoins like MELANIA and WOLF, where insiders allegedly coordinated liquidity drains. Despite the freeze lift, no new restrictions have been applied to these wallets, and Circle has not enacted further freezes, per on-chain observers.
The buy adds significant liquidity during a correction SOL down ~6-7% to ~$139 on Nov 18. Analysts see it as bullish, potentially pressuring shorts if SOL breaks $145. Technicals show RSI at 33 near oversold, with targets at $148-155 short-term.
Broader inflows (e.g., $500M+ into Solana ETFs/staking products) support accumulation narratives. This liquidity pull further erodes trust, exacerbating losses from the initial rug. No recovery efforts are evident; focus remains on asset tracing.
Highlights risks in memecoin liquidity and insider behavior. It echoes FTX-era manipulations but underscores Solana’s resilience as a rotation target. This event has trended on X, with discussions questioning regulatory oversight and SOL’s upside.
This isn’t just a routine whale buy; it’s a high-stakes pivot from a scandal-plagued memecoin to Solana’s core asset, occurring amid unresolved legal shadows. The purchase injects ~$62M into SOL during a 6-7% correction SOL trading at ~$139 as of this morning.
This adds to broader inflows, including $500M+ into Solana ETFs and staking products over the past week. On-chain metrics show SOL’s RSI at 33, with open interest in SOL futures surging 15% post-buy—mostly long positions. Analysts eye a short squeeze if SOL clears $145, targeting $148-155 short-term.
However, it coincides with a broader market slump, where memecoin rotations like this could accelerate SOL’s decoupling from BTC—potentially up 10-15% if ETF launches (e.g., Fidelity’s SOL ETF today) amplify momentum.
If SOL drops below $130, it could trigger $200M+ in long liquidations, per futures data. This buy might stabilize the dip but highlights how “tainted” funds can sway prices unpredictably. Despite the August unfreezing of $57.6M USDC from U.S. class-action vs. Kelsier Ventures/Davis brothers, this move reignites fraud concerns.
Argentina froze $507K in Hayden Davis-linked assets, estimating $100-120M investor losses, while an Interpol Red Notice request lingers. Circle hasn’t blacklisted these wallets (Defcy… and 61yKS…), allowing seamless swaps—prompting calls for stricter stablecoin oversight.
Echoes patterns in MELANIA/WOLF rugs 80%+ insider allocations, 99% crashes. X threads warn of “ghost wallets” reactivating, urging regulators to trace flows across Solana, Arbitrum, and Avalanche. If U.S. authorities refreeze assets, it could chill memecoin liquidity ecosystem-wide, deterring political endorsements like Milei’s which cleared him but dented approval ratings.
Victims from LIBRA’s $4B mcap wipeout see this as “insiders cashing out twice”—first via rug, now via SOL bets. Community demands via #CryptoScam trends push for DEX-level KYC or fee-sharing mandates to reimburse holders.
LIBRA’s LP drain claiming ~$26M fees renders remaining tokens illiquid for sellers, per on-chain sleuths— a classic “liquidity rug.” This deepens skepticism, with Solana memecoin volumes down 30% YTD post-LIBRA scandal despite onboarding 1M+ users via hype.
Political memecoins may cool, as Grayscale notes, reducing “supercycle” risks but slowing speculative inflows. The chain benefits from rotations, stress-testing throughput daily txns up 20% this week. Yet, it taints SOL’s image—early 2025 dips 17% post-LIBRA launch were blamed on memecoin drama, not fundamentals like DeFi TVL declines or Q1 unlocks.
Positively, it underscores SOL’s appeal as a “safe” altcoin haven, with staking yields drawing $380M+ via new ETFs VanEck, Bitwise. Funds dispersing to other alts signals a “hype-to-extraction” cycle. X analysts speculate LIBRA insiders post-9-month dormancy eye SOL memecoins next, urging tools like Bubblemaps for early detection.
This swap is a microcosm of crypto’s wild duality: opportunistic bets fueling SOL’s rebound while exposing regulatory gaps. Bullish for SOL holders if it sparks a squeeze, but a red flag for memecoin degens.