• Argentina’s LIBRA token, promoted by President Milei, plummeted 89% due to legitimacy concerns.
  • Traders suffer massive losses; investigations reveal a potential pump-and-dump scheme by the LIBRA team.

The recent launch of Argentina’s $LIBRA token has been making headlines in the market. The Solana meme coin promoted by the official tweet of Argentina’s President Javier Milei, known as LIBRA, collapsed. 

The coin first reached a market cap of $4.5 billion, but due to uncertainties about its legitimacy, it plummeted to approximately 90%. As per the data of DexScreener , LIBRA’s price reached a high of $4.50 after launching, and collapsed to the level of $0.50. Moreover, the meme coin has a trading volume of $1.1 billion.

Following the token’s dramatic 89% crash, Milei deleted his tweet and issued a statement clarifying his stance. He stated that he had unknowingly supported what he believed to be a private enterprise and had no connection to the project. After learning more details, he chose to stop promoting it.

Milei’s response also took a sharp political tone, criticizing his opponents for trying to exploit the situation. He said :

“A few hours ago I posted a tweet, as I have so many other times, supporting a supposed private enterprise with which I obviously have no connection whatsoever.

I was not aware of the details of the project and after having become aware of it I decided not to continue spreading the word (that is why I deleted the tweet).

To the filthy rats of the political caste who want to take advantage of this situation to do harm, I want to say that every day they confirm how vile politicians are, and they increase our conviction to kick them in the ass.”

Lookonchain Revealed Traders Faced Massive Losses In LIBRA

According to the data of Lookonchain, a crypto analytic platform, a trader lost $2.07 million within a two-hour window. The trader initially invested 14,214 SOL, approximately $2.85 million in value, to acquire 1.11 million $LIBRA tokens, only to sell them later for 3,954 SOL worth around $781,000.

As per the website of the Viva La Libertad Project, the LIBRA memecoin is launched with the objective to boost the Argentine economy. 

A earlier message was posted by Milei’s X account saying, This project will be committed to fostering the development of the Argentine economy by supporting small Argentine businesses and startups. The world desires to invest in Argentina.

Many traders dumped their LIBRA holdings regarding legitimacy concerns. On this on-chain analytics firm, Chainalysis expressed their concerns regarding the token launch. 

Chainalysis said,

“The address that created the token and the address holding a large portion of the LIBRA supply also appears to be controlled by single private keys, rather than multi-signature setups that are more common of established token launches.”

Bubblemaps, another prominent on-chain platform, also claimed that the LIBRA team is indulged in pump and dump. They were just cashing out and made $87M by removing USDC and SOL from liquidity pools.

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