Argentinian President Javier Milei is distancing himself from the $LIBRA memecoin, which plummeted from a $4.5 billion market cap to $200 million shortly after its launch. Initial concerns about insider trading arose, with insiders cashing out $87.4 million, while Milei later claimed ignorance of the details before deleting his promotional post. This situation has intensified scrutiny due to his previous involvement in a crypto scandal.
Argentinian President Javier Milei has distanced himself from the disastrous debut of the $LIBRA memecoin, which saw a staggering decline in market value from $4.5 billion to $200 million within mere hours of its launch. Initially endorsed via his official X account, the project raised alarms regarding potential insider trading and questioned the validity of its economic assertions.
At 5:01 PM ET, President Milei’s account praised $LIBRA as a “private project” designed to stimulate Argentina’s economy through small business funding. However, the project’s website, created shortly before the launch, failed to provide substantial transparency, offering only a Google Form for funding requests.
Shortly after launch, analytics firm Bubblemaps revealed that insiders managed to withdraw $87.4 million, leading to suspicions of liquidity manipulation. Over 82% of the token supply was reportedly controlled by a single cluster, leaving ordinary investors suffering losses. Following the developments, Milei declared he was “not aware of the details” and subsequently removed his promotional post.
This retreat has heightened scrutiny towards President Milei, particularly due to his previous association with the Coinx World crypto scandal in 2022, which involved allegations of fraud and misleading investment practices. Milei had been a vocal supporter of Coinx, further complicating his credibility in the realm of cryptocurrency.
In summary, President Javier Milei’s involvement in the $LIBRA memecoin fiasco has led to significant backlash, particularly following the dramatic loss in value and concerns regarding insider manipulation. His claims of ignorance about the project details, alongside his past ties to a scandalous cryptocurrency venture, raise serious questions about his judgment and the legitimacy of the projects he endorses. The swift actions taken by insiders against retail investors signal a troubling trend in the market, underscoring the necessity for regulatory oversight in cryptocurrency initiatives.
Original Source: www.dlnews.com
