Milei’s $LIBRA Crypto Scandal: From $4B Market Cap to 90% Crash

Presidential Endorsement Sparks Controversy: $LIBRA’s Meteoric Rise

A newly launched cryptocurrency, $LIBRA, triggered a massive scandal after Argentine President Javier Milei promoted and allegedly even endorsed the meme coin on a social media platform.

$LIBRA’s market capitalization swiftly surged to $4 bn, which was followed by distribution, allowing insiders who held over 80% of the tokens pre-launch to withdraw $87 mn in profits.

This caused $LIBRA’s value to crash 90%.

President Milei has since deleted his controversial post, citing a lack of due diligence regarding the project’s details.

The Argentine opposition has seized on the incident, accusing Milei of impropriety and raising the specter of impeachment.

The Great Unwind: Inside the $87 Million Token Dump

Investigations reveal $LIBRA’s ties to previous meme coin projects associated with Donald and Melania Trump.

Milei alleges that Hayden Davis, head of Kelsier Ventures, pitched the project as a means of developing infrastructure for small business financing.

Davis was previously referred to as a co-creator who assisted with the launch of the $MELANIA meme coin.

Beyond $LIBRA: Parallels with $CAR and Implications for Crypto Markets

This mishap echoes a similar scenario involving the Central African Republic’s $CAR, where an endorsement video featuring President Faustin-Archange Touadera preceded a sharp rise and subsequent nosedive in the token’s value.

Current State: Trading Activity and Market Sentiment

$LIBRA, alongside similar crypto ventures, faces an uphill struggle in regaining credibility.

The most recent fallout also raises concerns about potential negative repercussions for the broader cryptocurrency market.

At the time of writing, the token continues to move lower amid subdued trading.