15.02.2025 10:22
Argentina's President Javier Milei has vehemently denied any involvement in, or prior knowledge of, the LIBRA memecoin scam, a project he initially promoted. This denial comes amidst the spectacular collapse of the cryptocurrency, which saw over $4 billion wiped off its market capitalization within a mere seven hours of its launch – a staggering 96% plummet.
A post on X (formerly Twitter) from President Milei himself asserts a lack of connection to the LIBRA team, claiming he ceased promotion upon learning of the project's true nature. This explanation, however, offers little comfort to the countless investors who suffered substantial losses.
Independent analysis by Bubblemaps reveals a stark picture of insider manipulation. The report conclusively demonstrates that the LIBRA team, acting as sole sellers, enriched themselves to the tune of $87 million, absorbing significant buy pressure from unsuspecting investors. Bubblemaps' analysis grimly observed that a further $500 million remains to be extracted before the project's collapse is complete. This calculated cash-out significantly exacerbated the already precipitous decline in LIBRA's value, pushing its market cap from over $3 billion to less than $200 million in a breathtakingly short timeframe.
The LIBRA debacle bears an unsettling resemblance to other "presidential memecoins," most notably the TRUMP and CAR memecoins. The TRUMP memecoin, launched earlier this year, experienced an 80% drop, resulting in a $2 billion loss for investors. Similarly, the CAR memecoin, launched by the Central African Republic's president, plummeted by a staggering 98% within a week, evaporating nearly its entire $1 billion market cap.
These strikingly similar patterns of rapid growth followed by catastrophic collapse, coupled with evidence of substantial insider profits, have fueled speculation that these projects may be orchestrated by well-connected individuals engaging in fraudulent activities – often referred to as "grifters." The Argentinian crypto analyst Alex [Last Name withheld in original text] and others are among those voicing concerns about the systemic nature of this apparent scam.
