Javier Milei has distanced himself from the $LIBRA memecoin following a catastrophic 90% decrease in its market cap within hours of launch. Insiders profited significantly while retail investors incurred substantial losses. With concerns growing about transparency and Milei’s past affiliations in the crypto sector, scrutiny of the incident has intensified.
Argentinian President Javier Milei has distanced himself from $LIBRA, a Solana-based memecoin that experienced a dramatic crash, plummeting 90% from a market cap of $4.5 billion to merely $200 million hours after its launch. Following this incident, Milei deleted his promotional post and claimed ignorance of the situation’s intricacies.
Initially, $LIBRA was presented through Milei’s official X account, emphasizing its role as a “private project” designed to aid Argentina’s economy by financing small businesses. However, skepticism regarding the token’s legitimacy arose, particularly after insiders reportedly withdrew $87.4 million shortly after its debut.
Reports indicated that a staggering 82% of the token’s total supply was concentrated among a small group of large holders, facilitating substantial profit extraction through manipulated liquidity pools on the Meteora platform. Conversely, retail investors were left vulnerable, facing significant financial losses despite the coin’s lofty trading volume exceeding $1.1 billion from the outset.
Milei’s retreat from the $LIBRA promotion has triggered further scrutiny, especially considering his prior endorsement of Coinx World, a crypto firm embroiled in fraud allegations in 2022. His claims of lacking awareness regarding the memecoin’s details have only intensified public concern about his involvement in cryptocurrency ventures.
In summary, President Javier Milei’s association with the catastrophic launch of the $LIBRA memecoin raises questions about transparency and insider manipulation in cryptocurrency markets. Despite marketing it as a means to support small businesses, the rapid loss of value and mass withdrawals by insiders undermine legitimacy claims. Milei’s previous engagement with a controversial crypto firm further complicates his position in this unfolding issue.
Original Source: www.dlnews.com
