DeFi Tuna Cuts Ties with Kelsier Ventures After $100M LIBRA Scandal Rocks Solana
LTB DeFi Tuna Cuts Ties with Kelsier Ventures Amid LIBRA Token Scandal on Solana
In a bold move to uphold ethical standards, DeFi Tuna has severed ties with Kelsier Ventures following the explosive LIBRA token scandal that rocked the Solana ecosystem.
- DeFi Tuna returns $30,000 to Kelsier Ventures
- LIBRA scandal drains $100M from Solana
- Solana price drops to $178.54
- Allegations of insider trading involve Jupiter DEX’s founder
Background of the Scandal
The LIBRA token, part of the “Viva La Libertad” project, aimed to finance small Argentine companies. However, its promotion by Argentine President Javier Milei triggered a classic “rug pull” scenario—a situation where the value of a token is artificially inflated before crashing, leaving investors with significant losses. The token’s value spiked and then plummeted, resulting in a $100 million drain from the Solana ecosystem. Total Value Locked (TVL), which refers to the total amount of assets locked in a DeFi protocol, indicates the size and activity of the platform.
DeFi Tuna’s Response
DeFi Tuna, a Solana-based DeFi protocol known for its conservative approach to lending pools, has returned a $30,000 investment from Kelsier Ventures. This decision was made after Kelsier Ventures, led by Hayden Mark Davis, was implicated in the promotion and manipulation of the LIBRA meme token. Dhirk 🦣 (@CavemanDhirk), a representative for DeFi Tuna, stated:
“DefiTuna accepted an investment from Kelsier with a size of $30,000 which put Kelsier as the 2nd smallest investor in DefiTuna back in January 16, 2025. Upon finding out about Kelsier’s activities we have refunded Kelsier and cut all ties.”
DeFi Tuna remains operational and unaffected by the broader Solana turbulence, retaining about $10 million in TVL and continuing to offer high Annual Percentage Rates (APR) for SOL staking, demonstrating its resilience amidst the chaos. APR is the annual rate of interest paid out by the protocol to those who stake their SOL tokens.
Impact on Solana
The LIBRA scandal led to a significant $100 million drain from the Solana ecosystem. Following the fallout, Solana’s price dropped to $178.54, contributing to a bearish outlook. A Decentralized Exchange (DEX) like Jupiter DEX became embroiled in the scandal as its founder, @weremeow, faced allegations of insider trading and early sniping of meme token projects, including LIBRA. Early sniping refers to the practice of buying tokens immediately after launch to take advantage of the initial price surge. @weremeow has yet to issue a detailed statement regarding their involvement.
Effects on Other Projects
Kelsier Ventures, which typically invests small sums in crypto startups, backed three VC-funded projects, including E Money Network. The EMYC token of E Money Network lost 50% of its value following the LIBRA fallout. As of February 2025, Kelsier Ventures reported a 33% loss on its investments, highlighting the broader impact of the scandal on its portfolio.
Broader Implications
The LIBRA scandal has not only financial but also significant political implications. President Milei faces multiple lawsuits and impeachment requests due to his promotion of LIBRA. His social media post just three minutes after the token’s launch suggests pre-knowledge, contradicting his claims of unawareness. This incident underscores the broader impact of crypto scandals on national governance and regulatory frameworks.
The actions of DeFi Tuna reflect a commitment to ethical practices and decentralization, emphasizing the importance of integrity in the DeFi ecosystem. As the crypto space continues to grapple with market manipulation and insider trading, such moves underscore the need for greater transparency and accountability to maintain the trust of investors and users in the blockchain space.
Future Outlook
The LIBRA scandal may prompt regulators to take a harder look at meme tokens and their potential for market manipulation. The incident serves as a reminder of the volatile and often speculative nature of the cryptocurrency world, highlighting the need for vigilance and informed decision-making among crypto enthusiasts.
Key Takeaways and Questions
- What was DeFi Tuna’s response to the LIBRA scandal?
DeFi Tuna returned a $30,000 investment from Kelsier Ventures, the venture fund implicated in the LIBRA token scandal, and cut all ties with the fund.
- How has the LIBRA token affected the Solana ecosystem?
The LIBRA token led to a $100M drain from the Solana ecosystem and contributed to a bearish outlook, with Solana’s price dropping to $178.54.
- What is the current status of DeFi Tuna following the scandal?
DeFi Tuna remains operational and unaffected by the Solana turbulence, retaining about $10M in total value locked and offering high APR for SOL staking.
- Who is involved in the alleged insider trading related to LIBRA?
The founder of Jupiter DEX, @weremeow, is alleged to have been involved in insider trading and early sniping of meme token projects, including LIBRA.
- What impact did the LIBRA scandal have on other projects backed by Kelsier Ventures?
E Money Network, backed by Kelsier Ventures, saw its EMYC token lose 50% of its value, contributing to the fund’s 33% loss on its investments as of February 2025.
