President Javier Milei has distanced himself from the $LIBRA memecoin after its market cap plummeted by 90% within hours. Concerns about insider trading arose, with analytics revealing $87.4 million cashed out by insiders. Following the fiasco, Milei claimed ignorance of the details and deleted his promotional post, drawing additional scrutiny due to his previous involvement in a crypto scandal.
Argentinian President Javier Milei has distanced himself from the disastrous launch of the $LIBRA memecoin, which plunged 90% in market capitalization, falling from $4.5 billion to $200 million within hours. Originally promoted on Milei’s official X account, the cryptocurrency quickly raised suspicions about potential insider manipulation and the economic validity of its claims.
The launch, announced at 5:01 PM ET, aimed to support Argentina’s small businesses through a “private project.” However, the project’s hastily registered website lacked transparency and only included a Google Form for funding applications. Within three hours, an analytics firm revealed that insiders had cashed out $87.4 million, with a staggering 82% of the token supply concentrated among a few holders.
Analysis of trading activities showed over $1.1 billion in trading volume since the launch, with significant liquidity pool manipulation by large investors, leaving retail investors at a loss. Following the drastic price drop, Milei claimed he was “not aware of the details” regarding the project and subsequently deleted the promotional post. This response raises further concerns, particularly in light of his prior involvement in the Coinx World crypto scandal in 2022.
Milei had previously endorsed Coinx, which faced investigations for fraud and misleading investment promises. The fallout from the $LIBRA incident has attracted intense scrutiny both on Milei and the project itself, heightening concerns of regulatory oversight and the transparency of cryptocurrency initiatives in Argentina.
The swift collapse of the $LIBRA memecoin, paired with Milei’s retreat, underscores the necessity for greater regulatory scrutiny in the cryptocurrency market. The incident not only raises questions about the legitimacy of such projects but also highlights risks associated with insider trading and manipulation that can severely impact retail investors. Given Milei’s prior scandals, confidence in governmental involvement in crypto initiatives may be further compromised.
Original Source: www.dlnews.com
