President Javier Milei has distanced himself from the $LIBRA memecoin after its market value plummeted by 90%. Initial investments raised concerns of insider trading as significant amounts were withdrawn shortly after launch. Milei’s deletion of his promotional content and claims of unawareness have led to increased scrutiny due to his previous connection with the Coinx World scandal.
Argentinian President Javier Milei has distanced himself from the recent disaster surrounding the $LIBRA memecoin, which experienced a dramatic collapse from a market capitalization of $4.5 billion to $200 million within hours of its launch. This memecoin was initially promoted via Milei’s official X account, raising serious concerns regarding potential insider manipulation and the validity of its financial assertions.
Upon its announcement, the project was described as a “private project” designed to stimulate Argentina’s economy through support for small businesses. However, the project’s website provided scant transparency, primarily directing interested parties to a Google Form for funding applications. Within three hours of launching, analysis revealed that insiders had liquidated $87.4 million, with over 80% of the total token supply controlled by a single entity.
Market behavior indicated that prominent investors allegedly manipulated liquidity pools on the Meteora platform to secure profits, leaving retail investors to absorb significant losses. Over a billion dollars in trading volume was noted, highlighting the token’s rapid activity yet deteriorating value. Subsequently, Milei asserted he was “not aware of the details” of the project and deleted his promotional post.
This rapid retreat has intensified scrutiny of Milei, particularly in light of his previous involvement in the 2022 Coinx World crypto scandal, which resulted in allegations of fraud and deceptive investment practices. His initial endorsement of the now-disgraced Coinx raised further red flags regarding his connections to the cryptocurrency market.
The collapse of the $LIBRA memecoin has incited considerable skepticism towards President Milei’s involvement in cryptocurrencies, especially with his past association with Coinx World. Despite his claims of ignorance concerning the coin’s details, the swift departure from his promotional stance only intensifies scrutiny surrounding the launch and its implications for investors and the financial ecosystem in Argentina.
Original Source: www.dlnews.com
