Milei Distances Himself from $LIBRA Memecoin Following 90% Crash
Argentinian President Javier Milei has distanced himself from the $LIBRA memecoin after its market cap crashed by 90% post-launch, revealing concerns about insider trading. Insiders reportedly cashed out $87 million shortly after the launch, prompting scrutiny of Milei’s past involvement in a crypto scandal. Following the fallout, he claimed ignorance of the details and deleted his promotional post.
Argentinian President Javier Milei has distanced himself from the catastrophic launch of the Solana-based memecoin $LIBRA, which witnessed a staggering 90% crash in value shortly after its introduction. Initially, the token’s market capitalization plummeted from $4.5 billion to a mere $200 million within a few hours. Concerns regarding insider trading and the legitimacy of the project arose following Milei’s promotional announcement via his official X account.
The announcement claimed $LIBRA was a “private project” designed to stimulate Argentina’s economy by providing support for small businesses. However, the project’s website, which was registered hours before the launch, lacked transparency and merely contained a Google Form for funding applications. Reports from on-chain analytics firm Bubblemaps highlighted that insiders had cashed out approximately $87.4 million within just three hours, with 82% of the token’s total supply concentrated among a select group of holders.
Large token holders allegedly manipulated liquidity pools on Meteora to realize profits, leaving retail investors to bear the losses. Since its launch, trading volumes have reportedly exceeded $1.1 billion. Following these events, President Milei claimed he was “not aware of the details” and promptly deleted his original post supporting the memecoin. This reaction has drawn increased scrutiny, particularly in light of his involvement in the Coinx World crypto scandal in 2022.
Before assuming the presidency, Mr. Milei had endorsed the Coinx venture, which was later investigated for fraudulent activities and misleading investment offers. This background raises further questions about his judgment surrounding cryptocurrency projects, emphasizing the need for transparency and accountability in the crypto space.
The fallout from the $LIBRA memecoin’s launch has raised significant concerns regarding insider manipulation and the integrity of the project’s foundations. President Milei’s rapid retraction and claims of ignorance only heighten scrutiny, particularly in the context of his previous associations with questionable cryptocurrency ventures. Such incidents underline the necessity for vigilance and transparency in emerging financial technologies, especially within the volatile cryptocurrency market.
Original Source: www.dlnews.com
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