KIP Protocol Denies Role in $LIBRA Launch As Market Turmoil Grows

KIP Protocol denied involvement in $LIBRA’s launch, clarifying its role in tech projects, not token sales or liquidity.

Onchain data raised red flags, with 50% of $LIBRA held in one wallet and 82% of supply unlocked, fueling manipulation concerns.

Political ties amplified speculation, but President Milei distanced himself as regulatory scrutiny on political tokens increased.

KIP Protocol recently addressed concerns about its involvement in the $LIBRA token launch. The company emphasized that it had no part in the token issuance or market-making process. Instead, KIP was invited post-launch to oversee funded tech projects and provide technical infrastructure for AI initiatives. The launch and liquidity management were handled entirely by Kelsier Ventures, led by Hayden Davis.

Misinformation and Market Reaction

Despite KIP’s clarification, misinformation spread rapidly across social media. The situation escalated when President Milei tweeted about $LIBRA, causing immediate investor speculation. However, KIP stressed that its role was never linked to token sales or wallet holdings. As a result, all token-related concerns should be directed to Kelsier Ventures.

Besides, KIP confirmed that it received threats and accusations despite having no financial involvement. The company reaffirmed its commitment to transparency and blockchain infrastructure, distancing itself from token launches. Moreover, after discussions with Kelsier, it was revealed that all SOL from the launch would be reinjected into liquidity pools. Additionally, market-making fees would be allocated to an Argentine foundation.

Onchain Data Raises Concerns

Despite reassurances, onchain analytics raised red flags about $LIBRA’s structure. Data from Bubblemaps showed that 50% of the token supply was concentrated in a single wallet. Additionally, 82% of the supply remained unlocked, posing significant sell-off risks. Consequently, concerns emerged regarding potential market manipulation and rug-pull scenarios.

Moreover, The Kobeissi Letter highlighted irregularities surrounding the project’s website. The domain was registered just hours before launch and was set for only one year. Furthermore, the site merely contained a Google Form for funding applications. These findings fueled skepticism regarding the project’s legitimacy.

Political and Legal Implications

The project gained legitimacy after being reposted by Argentine politicians. However, President Milei later distanced himself, claiming he was unaware of the initiative. Similarly, comparisons arose with the TRUMP token, which faced legal scrutiny despite having a lock-up period.

Consequently, regulatory concerns heightened as critics suggested that politically affiliated tokens could serve as financial loopholes. KIP Protocol remains focused on innovation while distancing itself from speculation. The company continues to prioritize blockchain infrastructure rather than market-driven token launches.

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