President Javier Milei distances himself from the $LIBRA memecoin after its market cap fell from $4.5 billion to $200 million due to insider trading allegations. Insiders withdrew $87 million soon after launch, despite the token’s initial purpose of supporting Argentina’s economy. Milei stated he was unaware of the situation and subsequently deleted his promotional post, raising further scrutiny given his past involvement in another crypto scandal.
Argentinian President Javier Milei has distanced himself from the recent crash of the $LIBRA memecoin, which plummeted by 90% shortly after its launch. Initially announced on Milei’s official X account, the token was intended to support local businesses and enhance Argentina’s economy. However, troubling signs of insider trading emerged, raising questions about the legitimacy of the project and its economic assertions.
Within hours of its launch, the market capitalization of $LIBRA spiraled from $4.5 billion to approximately $200 million. An analytics firm revealed that insiders had cashed out an alarming $87.4 million shortly after the offering, indicating heavy concentration of the token supply among a small number of holders. This manipulation ultimately left retail investors with significant losses, despite a trading volume exceeding $1.1 billion.
Following the disastrous outcome, President Milei stated he was “not aware of the details” and deleted his promotional post, a move that has intensified scrutiny of his involvement in this incident. This is not the first time Milei has faced criticism; he previously endorsed the Coinx World crypto project, which came under investigation for fraudulent activities and misleading investment promises.
In summary, President Javier Milei’s association with the $LIBRA memecoin has drawn considerable criticism following its rapid decline in value and allegations of insider trading. The lack of transparency surrounding the project has led to increased public scrutiny, especially considering Milei’s prior involvement in another controversial cryptocurrency venture. This incident raises broader concerns about the governance and legitimacy of similar initiatives in the crypto market.
Original Source: www.dlnews.com
