Argentinian President Javier Milei has withdrawn support for the $LIBRA memecoin after it crashed by 90% post-launch. The token, which raised concerns over insider trading and lacked transparency, saw insiders cash out $87M. Milei stated he was unaware of the project’s details and deleted his promotional post, increasing scrutiny of his previous crypto involvement.
Argentinian President Javier Milei has distanced himself from the $LIBRA memecoin project following its catastrophic decline of 90%, which saw its market capitalization plummet from $4.5 billion to $200 million shortly after launch. Initially promoted on Milei’s official social media account, concerns emerged regarding insider trading and the authenticity of the token’s purported economic benefits.
The token was marketed as a private initiative intended to invigorate Argentina’s economy by funding small businesses, as announced on Milei’s account. However, the project’s website was registered just hours before its launch and lacked transparency, offering only a Google Form for funding applications.
Data from analytics firm Bubblemaps revealed that, within three hours of launch, insiders had liquidated approximately $87.4 million, with over 82% of the token’s supply concentrated among a few holders. It was reported that these large investors manipulated liquidity pools to maximize their gains at the expense of retail investors, who were left with significant losses, amid a trading volume exceeding $1.1 billion since inception.
In light of the backlash, Milei claimed he was “not aware of the details” surrounding the project and subsequently deleted his initial promotional post. This response has heightened scrutiny of his involvement, especially given his previous endorsement of Coinx World, which faced investigation for fraud and misleading investment claims.
The swift collapse of the $LIBRA memecoin has raised significant questions regarding insider trading and the authenticity of its economic claims. President Javier Milei’s hasty retreat from the project, amid concerns about his past connections to similar ventures, highlights the growing scrutiny of cryptocurrency initiatives in Argentina. With a significant loss incurred by retail investors, calls for enhanced oversight in the crypto sector are likely to intensify.
Original Source: www.dlnews.com
