The recent announcement by KIP Protocol regarding its involvement in the controversial LIBRA token has raised eyebrows in the cryptocurrency community. Javier Milei, the Argentine President, initially endorsed the project which has since faced scrutiny after a catastrophic launch that saw the token’s value plummet by over 95% within hours.
During a live session on X (formerly Twitter), Julian Peh, CEO of KIP Protocol, clarified his company’s role. He stated,
“Not a single SOL will be used outside of the purpose of running Project Viva La Libertad.”
Peh emphasized that KIP Protocol was a consultancy firm hired to assist with the distribution of funds intended for local businesses in Argentina, not the creator of the token itself.
Initially, the project sparked a wave of investor concern, with speculation that President Milei’s endorsement might have been a result of a social media hack. However, the project began to gain some legitimacy when other Argentine politicians reposted Milei’s message. Despite this, President Milei later distanced himself from the project, claiming ignorance of its details.
An analysis conducted by The Kobeissi Letter, a well-respected market analysis firm, raised red flags about the project’s transparency. Their investigation uncovered that the project’s official website was a simple Google Form for businesses to apply for funding, and that the domain was registered just hours prior to the token’s launch, further intensifying questions about the project’s credibility.
Additionally, it was noted that a staggering 50% of the LIBRA token’s supply is currently held in a single wallet, a situation that could trigger significant market volatility should these tokens be sold. Bubblemaps highlighted the risk, stating that at least 82% of the token’s supply was unlocked and could potentially be liquidated at any moment.
The concerns surrounding the LIBRA project echo those seen in the broader cryptocurrency landscape, particularly with projects like memecoins that often attract scammers and unscrupulous initiatives. The situation continues to evolve, and stakeholders are urged to exercise caution in assessing the viability and legitimacy of the Viva La Libertad project.
As KIP Protocol persists with its commitment to the original vision for Project Libertad, many are left pondering the real implications of this involvement and what it means for the future of Web3 projects in regions like South America.
