15.02.2025 07:24
Javier Milei, Argentina's president, has retracted his support for the LIBRA meme token, citing insufficient prior research. His initial endorsement, publicized on X (formerly Twitter), had propelled the token's market capitalization to a staggering $4.5 billion, a remarkable surge in a matter of hours. This rapid ascent, however, was followed by a dramatic reversal as skepticism regarding the token's legitimacy and potential manipulation tactics took hold.
President Milei's subsequent disavowal of the project, coupled with his unfollowing of the LIBRA token's Twitter account, underscores the rapid volatility of the cryptocurrency market. His earlier message on X, now deleted, articulated a vision of LIBRA as a tool to stimulate the Argentine economy by supporting small businesses. Ironically, the project’s intended purpose mirrored the aspirations behind the infamous TRUMP token, launched by a previous US president, a similar instance of a meme coin's sudden emergence and subsequent dramatic fluctuation.
The token plummeted a devastating 89% in value, crashing from an initial price of $4.50 to a mere $0.50, according to data from DexScreener. The project, purportedly aiming to foster Argentine economic development by investing in local enterprises, sparked a flurry of trade activity, but questions regarding its authenticity arose quickly. Traders, initially eager to jump on the bandwagon, were left with substantial losses as the token's value drastically declined.
Analysts flagged concerning aspects of the LIBRA token's development process, suggesting that a significant amount of funds might have been siphoned off by developers in a short-term pump-and-dump scheme. Estimates from on-chain analysts allege a $87 million illicit transfer. The incident, reminiscent of the U.S. President Trump's own TRUMP token launch, illustrates the inherent risks and potential for fraudulent activity in the volatile meme coin space. While Mr. Trump's token was ultimately deemed legitimate, the similarities in rapid ascension and subsequent controversy persist in the LIBRA saga. Despite the official assurances from Mr. Milei to Bloomberg Línea, a cloud of suspicion now surrounds the token's origins and true purpose.
