Javier Milei

🚨 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.

https://twitter.com/lookonchain/status/1890636040748081322

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.”

https://twitter.com/JMilei/status/1890606683291779195

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:

https://twitter.com/martypartymusic/status/1890614049827684754

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.

Argentina has just elected Javier Milei as its new president, and he’s causing quite a stir. The 53-year-old libertarian economist managed to secure a majority in the popular vote, surpassing his opponent Sergio Massa. Milei, who identifies as an anarcho-capitalist, is determined to shake things up and dismantle what he calls the political “caste” that, according to him, has been failing the nation. He’s been quite vocal about his belief that the state “destroys wealth.”

In a recent interview with Tucker Carlson, Milei, an advocate of free-market capitalism, attributed Argentina’s economic challenges to a century of socialist policies. The election, held on Sunday evening, was a decisive run-off after a closely contested initial vote where Massa initially had a narrow lead.

Massa gracefully conceded defeat to Milei even before the final vote tally was announced. He stated, “The results are not what we expected, and I have contacted Javier Milei to congratulate him and wish him luck,” in a media announcement.

Milei has managed to gather support from the bitcoin and crypto community, as he’s been an outspoken advocate for bitcoin, claiming that it “represents the return of money to its original creator, the private sector.”

In addition to his support for cryptocurrencies, Milei is pushing for the concept of “dollarization” and wants to abolish the country’s central bank, suggesting that adopting the dollar could be a remedy for Argentina’s economic troubles. Leading Latin America’s third-largest economy, Milei faces significant challenges, particularly with Argentina’s inflation rate skyrocketing to 121% in October.

Following Milei’s electoral success, social media platforms, especially X, are buzzing with millions of posts about “Argentina” and “Milei.” Meanwhile, major news outlets like the Guardian and the Washington Post are quick to label Milei with terms such as “far right” and draw parallels between him and former U.S. President Donald Trump. Quite the interesting turn of events in Argentine politics!