The world of cryptocurrency is shaken by a significant scandal involving Argentina’s pro-crypto leader, Javier Milei, and the LIBRA Coin advertised as a grassroots effort to bolster small enterprises. LIBRA skyrocketed to a $4.5 billion market value before plummeting to $200 million. The repercussions have not only rattled the crypto sector but have also sparked demands for Milei’s impeachment.
Milei endorsed LIBRA on his official X account, portraying it as a private venture aimed at rejuvenating Argentina’s floundering economy. Yet, mere hours after its debut, blockchain data unveiled a dubious concentration of power: 82% of LIBRA’s supply was held by less than ten wallets. Insiders reportedly cashed out $87.4 million within just three hours, leaving ordinary investors to bear significant losses.
The country’s fintech association has indicated that the LIBRA affair could be a “rug pull,” where developers abandon a project after reaping profits from its initial offerings. Adding to the uproar, Milei promptly deleted his promotional post and claimed ignorance of the token’s specifics. Detractors have drawn comparisons to his role in the 2022 Coinx World crypto fiasco, where he promoted a deceitful investment firm.
Opposition lawmakers, including Leandro Santoro, have called for Milei’s impeachment, pointing to international disgrace and fiscal irresponsibility. The LIBRA crash has also sent shockwaves through the global meme coin arena, erasing over $6 billion in liquidity in under three hours. Other coins, such as TRUMP coin, experienced steep declines, with $500 million wiped from its market value.
Julian Peh, founder of Kip Protocol and an alleged central figure behind LIBRA, has denied any misconduct, asserting that no funds were liquidated and that the project remains operational. However, Peh has offered no definitive plan for restoring investor trust.
This crisis illuminates the perils at the intersection of political integrity and speculative cryptocurrency ventures. LIBRA’s rise and decline reveal how high-profile endorsements can generate unsustainable market euphoria while placing retail investors at considerable risk.