Memecoin influencers LA Vape Cabal on the defensive following ‘Libragate’
Crypto influencer Threadguy says he had “zero insider information” after he lost $250,000 trading the LIBRA token launched by Argentine president Javier Milei.
After the token collapsed from a $4.5 billion market cap, accusations of insider trading were leveled at Threadguy and other members of the so-called “LA Vape Cabal.”
Accusers point to a live stream hosted by Threadguy in which he said there had been “rumblings” and “whispers” about an Argentina coin. During the same stream, Threadguy’s fellow Vape Cabal member Faze Bank called to say that he and his manager lost money on LIBRA.
He told Threadguy, “I got in really, really early. I was like up $300K and fucking luckily…” before Threadguy muted the stream and covered his mouth for almost 30 seconds.
Threadguy has since uploaded a 10-minute video denying the “baseless” accusations of insider trading and removed his profile picture from his X account.
Read more: Argentine president Javier Milei pulled his second crypto rug this weekend
“I would implore you, as the whole thing happened live, to go find proof, go find a message, go find a Solscan transaction, go find anything that attaches this to me whatsoever because it doesn’t exist,” he said.
According to Threadguy, the launch of an Argentina coin was an open secret across the crypto community. On muting the Faze Banks call, he claims there were messages that popped up on his phone that he did not want to show to 3,000 people while livestreaming.
Faze Banks has since stated that he doesn’t have anything to do with LIBRA, and another crypto influencer, Frankdegods, has also clarified that he “did not get insider on this launch.”
Hayden Davis, who holds $100 million in funds made from LIBRA, is now focusing on damage control and claims the LA Vape Cabal has “no idea what’s going on,” adding, “I’ve never met them.”
Milei is digging himself a hole
Argentina’s president Javier Milei is also on the defensive. In his first TV interview since he launched LIBRA, he claimed, “I did not promote that… I spread the word.”
It’s worth noting, however, that after denouncing the project, Milei later retweeted a tutorial demonstrating how to buy the Libra token.
In the interview, he also downplayed the number of potential traders, saying 5,000 people (among them only “four or five” Argentinians) were likely involved and not 44,000 as the interviewer implied.
Protos has reached to Threadguy to find out what he knew about Libra before its launch.
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