The Libra memecoin experienced a meteoric rise after Argentine President Javier Milei’s endorsement, increasing its value by 3,000 percent within hours. However, the subsequent deletion of Milei’s promotional tweet raised concerns of unscrupulous practices, leading to a price drop of 95 percent. Ongoing investigations link Libra’s creators to similar dubious crypto projects, and legal actions against Milei have begun.
The recent controversy surrounding the Libra memecoin has showcased the volatile nature of the crypto market. Following Argentine President Javier Milei’s promotion of Libra on his X account, the token’s value skyrocketed by 3,000 percent, reaching a market cap of $4.5 billion shortly after its launch. However, this buying frenzy was short-lived, as suspicions of a rug-pull soon surfaced after Milei deleted his tweet promoting the token.
The rapid rise and subsequent fall of Libra drew significant attention from global investors, igniting concerns over the legitimacy of the project. Within hours, as the memecoin’s value hit over $4 billion, it began to decline sharply, leading to a dramatic 95 percent drop in price. Social media users speculated about a typical rug-pull scenario, where developers inflate a project and abandon it, profiting while investors lose.
Arkham Intelligence reported that Libra is built on the Solana blockchain. The report revealed that eight crypto wallets controlled 83 percent of the token’s supply. On February 15, LookOnChain, a blockchain analytics tool, disclosed that the Libra team cashed out $107 million through various liquidity actions. Additionally, a substantial number of wallets incurred significant losses as the token price plummeted.
After hitting a peak of $5, Libra’s current price is approximately $0.3678, with a market cap now standing at $367.8 million. Following the token’s collapse, President Milei advised the public against engaging with Libra, claiming he was unaware of the project’s intricacies before promoting it. His deleted tweet raised questions of accountability, prompting complaints against him from Argentine lawyers for promoting potential fraud.
Crypto intelligence firm Bubblemaps has drawn connections between the creators of Libra and the makers of other trending memecoins related to U.S. political figures. Hayden Mark Davis, the launch strategist for Libra, has openly admitted his role in its launch, although claims of partnerships with significant firms like KIP Protocol have been denied. KIP Protocol clarified that there were no business dealings with Davis and cited a firm named Kelsier Venturer as responsible for Libra’s launch. As investigations continue, the full implications and details surrounding the Libra debacle remain ambiguous.
The rise and fall of Libra memecoin underscores the inherent risk in cryptocurrency investments, particularly with memecoins that are susceptible to market fluctuations and manipulations. Despite initial hype from a high-profile endorsement, the swift collapse highlights the need for improved transparency and accountability in the crypto industry. Ongoing legal actions and negative publicity may further complicate the future of projects like Libra.
Original Source: www.gadgets360.com
