- KIP Protocol says it did not initiate or launch Libra.
- The project did not also profit in any way from the launch, despite being ‘misled’ to post about token.
- Libra, also promoted by Argentina President Javier Milei on X, crashed soon after launch.
KIP Protocol, the web3 layer for AI on Base, has denied allegations that it had a role in the launch of Libra, the cryptocurrency that turned out to be a major scandal in the space.
On Monday, the KIP Protocol team published a statement that it said clarified the facts around the LIBRA token launch.
“We recognize the harm that the $LIBRA situation has caused many investors, our customers and to the wider crypto community. Like many, we have been shocked by the recent events and want to clarify facts regarding KIP Protocol’s role in the event,” the platform posted on X.
KIP Protocol’s statement listed five key points related to the Libra project.
It also highlights the endorsement by Argentina president Javier Milei, a fact that only saw retailers suffer as the price crashed shortly afterward.
The events even saw an investigation launched in Argentina, while industry observers pointed to the harm to retail investors.
One of the platforms to get criticized was the KIP Protocol.
What has the project said about Libra?
In its statement, the KIP Protocol team has denied reports that it initiated the project.
“KIP did not initiate the Libra project, or Project Viva La Libertad. We did not direct any activity nor did we participate in any discussions regarding the token launch. We are an early-stage AI company that became a convenient party to provide cover for other parties who initiated and managed the token launch,” the statement reads in part.
The post on X also highlighted four other points. It includes the assertion that the project did not create or approve the website for Project Viva La Libertad. Rather, KIP had an invite that sought its assistance in the management of a financing initiative targeted for Argentinian small and medium enterprises, or SMEs.
1/ How $LIBRA was created by the same team behind MELANIA and other short-lived coins
Featuring new onchain evidence
A thread with Coffeezilla ↓ pic.twitter.com/gNwj97KapF
— Bubblemaps (@bubblemaps) February 17, 2025
According to KIP, the “invitation was made by Mauricio Novelli only on 13 February 2025, based on our past experience in running grant programs, and our ability to deploy AI infrastructure for companies.”
KIP says the SME financing initiative was only slated for commencement at a later date. Libra launched and crashed before the platform undertook any discussions regarding Project Viva La Libertad.
So did KIP have anything to do with the token launch? No, according to the statement.
“We were not informed in advance of the token sale date or time. We did not promote the purchase of the token in any way before or after the launch.”
Despite posting about LIBRA on X, KIP maintains they had nothing to do with the launch. The team did not also profit from the token and none of the wallets that received tokens or held them belong to KIP.
Libra’s token launch, ostensibly by Hayden Davis or Kelsier Ventures, saw unsuspecting victims lose millions of dollars as the token’s price crashed.
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