Argentina’s stock market saw a sharp decline of 5% following the launch of the LIBRA token, supported by President Milei. Amid legal allegations of fraud against him, LIBRA’s trading volume soared before plummeting by 90%. Despite the turmoil, a subsequent surge followed Milei’s reposting of a buying tutorial on LIBRA, highlighting the volatile nature of cryptocurrency investments in Argentina.
Argentina’s stock market faced significant disruption as President Javier Milei became embroiled in controversy surrounding the newly launched LIBRA token. Following the introduction of this Solana-based meme coin, the S&P Merval, which tracks the country’s major publicly traded companies, experienced a 5% drop at the start of trading on February 17. Although the index partially rebounded by 2%, it still fell short of the previous week’s closing figures, as reported by Yahoo Finance.
Speculation suggests that the legal complaint against President Milei is likely a factor in the decline of the S&P Merval. The LIBRA token, released through the meme platform Pump.fun, had initially garnered Milei’s support in a now-deleted tweet, which promoted it as a stimulus for Argentina’s economy and small business sector. Amid rising interest in sovereign-tied meme coins, the demand was notably heightened following the substantial success of the TRUMP token in the United States.
Despite a robust trading volume, LIBRA saw a staggering 90% drop in value from its $4 billion high shortly after its debut. The fallout prompted President Milei to remove his supportive tweet and initiate an investigation into the token’s launch, following a domestic lawsuit accusing him of fraudulent behavior. Milei’s office has vehemently denied any advance knowledge regarding LIBRA’s creation, asserting that neither he nor his team had prior notice of the token.
Kelsier Ventures CEO Hayden Davis, who has acted as an advisor to President Milei on LIBRA, admitted to acquiring a significant amount of the token at launch—a process known as ‘sniping.’ This practice is often associated with high-stakes launches and potential “rug pulls,” wherein projects disappear after raising capital. In a YouTube discussion, Mr. Davis disclosed that he withdrew approximately $100 million from LIBRA’s liquidity, asserting his intent to collaborate with the government concerning these funds.
In a surprising turn of events, LIBRA’s value rebounded by over 60% after President Milei reposted a tutorial on purchasing the token. This unexpected development adds further complexity to the ongoing situation surrounding Milei and the LIBRA token, particularly amidst the legal scrutiny he faces and the volatility of cryptocurrency in Argentina’s financial landscape.
The controversy surrounding President Javier Milei and the LIBRA token has significantly impacted Argentina’s stock market, as reflected in the sharp decline of the S&P Merval. The legal allegations against him could indicate a loss of public confidence, contributing to market instability. While the rebound in LIBRA’s value post-tutorial hints at ongoing interest, the situation underscores the potential risks and volatility inherent in meme coins and speculative investments.
Original Source: crypto.news
