- KIP Protocol says it did not initiate or launch Libra.
- The project also says it received no benefit from the token’s launch, despite being “misleadingly” associated with and publishing information about the token.
- Libra, which was also promoted on X by Argentine President Javier Milei, collapsed shortly after its debut.
KIP Protocol, a web3 AI layer built on Base, has denied involvement in the launch of Libra, the cryptocurrency that turned into a major controversy within the sector. The token’s rollout has been described as a serious scandal and prompted significant scrutiny.
On Monday, the KIP Protocol team published a statement on X explaining what it says are the facts about the LIBRA token launch.
“We recognize the harm the $LIBRA situation has caused many investors, our customers, and the broader crypto community. Like many others, we are shocked by recent events and want to clarify KIP Protocol’s role in this matter,” the platform wrote on X.
The KIP Protocol statement listed five key points related to the Libra episode. It also noted the endorsement by Argentine President Javier Milei, a fact that ultimately harmed retail investors after the token’s price plunged.
Those events triggered an investigation in Argentina and drew criticism from industry observers who highlighted the losses suffered by retail investors. One of the platforms singled out for criticism was KIP Protocol.
What does the project say about Libra?
In its statement, KIP’s team denied reports that it initiated the Libra project.
“KIP did not initiate the Libra project or the Viva La Libertad project. We did not lead any activity nor participate in any discussions about launching the token. We are an early-stage AI company that became a convenient party to provide infrastructure to other parties who initiated and managed the token launch,” the statement reads.
The post on X emphasized four additional points. It said KIP did not create or approve the Viva La Libertad website. Rather, KIP received an invitation to help manage a financing initiative intended for Argentine small and medium-sized enterprises (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
KIP says the invitation came from Mauricio Novelli on February 13, 2025, and was based on KIP’s prior experience running grant programs and its ability to deploy AI infrastructure for businesses.
According to KIP, the SME financing initiative was planned for a later date. Libra was launched and had already collapsed before the platform engaged in any discussions about Viva La Libertad.
So, did KIP have anything to do with launching the token? The company’s statement says no.
“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 it was not involved in the token’s launch. The team also says it did not profit from the token: none of the wallets that received or held tokens belong to KIP.
The introduction of the Libra token—allegedly linked to Hayden Davis or Kelsier Ventures—left unsuspecting investors with significant losses when the token’s price collapsed, costing victims millions of dollars.
KIP’s statement aims to distance the company from the decision-making and promotion behind the token sale while expressing sympathy for those harmed. The controversy continues to draw regulatory attention and industry criticism as authorities and observers investigate how the launch unfolded and who was responsible for the financial damage.