15.02.2025 11:07
The Argentine cryptocurrency LIBRA, once propelled to stardom by President Javier Milei's endorsement, has experienced a dramatic 90% price crash, leaving investors reeling from substantial losses. Initially hailed as a potential economic catalyst, the token's meteoric rise was swiftly followed by a devastating plummet attributed to insider activity draining a staggering $107 million from the market.
Launched as a cornerstone of the Viva La Libertad Project, LIBRA aimed to revitalize the Argentine economy by injecting capital into small businesses and startups. Milei's public backing, coupled with his call for global investment, ignited a frenzy, driving the token's price up by an astonishing 3000% to an all-time high of $4.5. A fully diluted valuation of $4.5 billion was reached within mere hours, mirroring the hype surrounding meme coins like TRUMP and MELANIA. This fleeting success, however, foreshadowed a similar fate.
The unraveling began with on-chain analysis revealing a concerning concentration of LIBRA's supply – 82% – controlled by insiders or a handful of large holders (whales). The project team further exacerbated the situation by withdrawing $87 million in USDC and SOL, effectively draining liquidity and triggering the price collapse. This maneuver paved the way for insiders to capitalize on the ensuing chaos, extracting $107 million in profit while leaving other investors to shoulder the devastating losses.
From a peak of $4.5, LIBRA now trades at a meager $0.2236 according to Dexscreener data, representing a 90% decline. Its market capitalization stands at $221.3 million with a trading volume of $1.13 billion, stark reminders of the rapid devaluation. This incident serves as a cautionary tale, highlighting the inherent volatility and risks associated with chasing trending cryptocurrencies, particularly those lacking robust regulation and transparency. The president's initial enthusiasm for the project has seemingly waned, leaving the future of LIBRA and the Viva La Libertad Project uncertain.
