Argentinian President Javier Milei’s support for the $LIBRA token led to a rapid price spike and subsequent controversy. While the LIBRA team gained over $107 million, many investors suffered significant losses, with some labeling it one of the largest rug pulls in crypto history. Milei later withdrew his support, citing a lack of knowledge about the project.
In recent events, Argentine President Javier Milei stirred controversy by announcing the launch of a cryptocurrency token named $LIBRA. The token’s value saw a dramatic increase of several hundred percent within hours, prompting Milei to retract his support. He later clarified that his initial promotion was unintentional and emphasized no connections to the project.
Subsequent investigations revealed that the LIBRA project’s team accumulated over $107 million from liquidity pools. Data from Lookonchain indicated that eight wallets associated with the LIBRA developers engaged in activities involving the addition and removal of liquidity, netting them $57.6 million in USDC and $49.7 million in SOL. This strategic maneuver has drawn criticism, likened to a “soft-rug pull.”
The fallout left numerous investors, predominantly retail, facing significant losses, with reports of one individual losing more than $5 million. Analysts are labeling this incident as one of the largest rug pulls in crypto history, with an estimated market loss surpassing $4.4 billion following the token’s spike and subsequent decline.
After retracting his endorsement of the $LIBRA token, Milei responded to political backlash, stating that he was unaware of the project specifics at first. In his words, “supporting a supposed private enterprise with which I obviously have no connection whatsoever.” He criticized politicians who sought to exploit the situation, asserting a resolve to bring about political changes.
The token’s trading history showed a remarkable surge from $0.27 to $4.56 shortly after launch, achieving a trading volume of $1.14 billion. Yet, it currently trades near $0.23 with a total liquidity of about $51 million, reflecting significant volatility and investor uncertainty in the aftermath of the announcement.
The launch and rapid devaluation of the $LIBRA token exemplify the risks associated with cryptocurrency investments, particularly in cases of promotional endorsements by public figures. While the developers profited substantially, many investors faced devastating losses, underscoring the need for caution and due diligence in crypto trading. The incident raises critical questions about regulatory oversight and the accountability of both project creators and endorsers.
Original Source: www.cryptotimes.io
