🚨 Javier Milei’s LIBRA token endorsement ends in disaster 🚨
Insiders cashed out millions, leaving investors with heavy losses.
LIBRA Token’s Meteoric Rise and Sudden Collapse
Argentina’s President Javier Milei withdrew his support for the LIBRA meme token after initially endorsing it. He admitted he didn’t do proper due diligence before promoting it on social media. Once he realized the details, he deleted his tweets and distanced himself from the project.
The LIBRA token, introduced under the Viva La Libertad Project, aimed to support Argentina’s economy by funding small businesses. Following Milei’s endorsement, the token skyrocketed 3,000%, reaching an all-time high (ATH) of $4.5 and a $4.5 billion valuation.
However, the excitement quickly turned into a nightmare. On-chain data revealed that insiders controlled 82% of the token supply. Soon after, they pulled $87 million in USDC and SOL from liquidity, causing the price to crash by 90%.
LIBRA Token Price Manipulation and Investor Losses
Insiders didn’t stop there. They cashed out an additional $107 million, making a $20 million profit, while retail investors suffered massive losses.
One trader lost $2 million in just two hours, buying 1.11M LIBRA for $2.85M, only to see its value drop to $781,000.
As of now, LIBRA trades at $0.2236, with a market cap of $221.3 million and a trading volume of $1.13 billion.
Milei’s Response and Political Fallout
After backlash, Milei clarified his stance on social media:
“I was not aware of the project details and decided to delete my tweet once I learned more.”
He also lashed out at critics, calling them “filthy rats of the political caste” trying to exploit the situation for personal gain.
This isn’t Milei’s first crypto controversy. In 2021, he endorsed CoinX, an alleged Ponzi scheme promising AI-assisted trading profits. Investors lost millions, leading to lawsuits against Milei.
LIBRA Token: Another Pump-and-Dump Scheme?
LIBRA’s collapse has reignited concerns over celebrity-endorsed crypto projects. Similar incidents include:
- Donald Trump’s TRUMP token, which faced volatility.
- Central African Republic’s CAR token, which crashed despite a billion-dollar valuation.
Legal experts suggest Milei’s involvement may violate Article 265 of Argentina’s Penal Code, potentially leading to market manipulation charges.
Final Thoughts
The LIBRA token disaster highlights the risks of speculative crypto projects and the dangers of relying on high-profile endorsements. Investors should approach such projects with caution, as many end up as pump-and-dump scams.
