Milei Distances From $LIBRA Memecoin Following 90% Market Crash

Javier Milei has retracted support for the $LIBRA memecoin after a staggering 90% crash in its market value. The project faced accusations of insider trading, leading to significant withdrawals by insiders. Milei’s past connection to a fraudulent cryptocurrency further complicates his involvement and credibility regarding such initiatives.

Argentinian President Javier Milei has distanced himself from the disastrous launch of the $LIBRA memecoin, which experienced a dramatic 90% crash in market capitalization, plummeting from $4.5 billion to a mere $200 million shortly after its introduction. Initial promotion of the token was featured on Milei’s official X account, where he described $LIBRA as a initiative to enhance Argentina’s economy by supporting small businesses. However, the project raised red flags concerning potential insider trading and questionable economic claims.

The $LIBRA memecoin, built on the Solana blockchain, encountered significant issues as analytics firm Bubblemaps revealed that insiders had withdrawn approximately $87.4 million within three hours of the launch. Alarmingly, the distribution showed that 82% of the token supply was amassed within a single group, leading to accusations of liquidity pool manipulation on the Meteora platform that ultimately left retail investors at a loss. Detrimental trading activity was recorded, with over $1.1 billion in volume since launch.

In reaction to the situation, President Milei deleted his promotional post regarding the memecoin and commented that he was “not aware of the details” related to the project. This defense has prompted intensified scrutiny of Milei, particularly due to his previous endorsement of Coinx, a digital currency firm implicated in a fraud investigation in 2022. This history raises concerns about Milei’s involvement and awareness of cryptocurrency ventures and their potential ramifications.

In summary, President Javier Milei has withdrawn from the $LIBRA memecoin initiative after its catastrophic market crash, which saw a staggering decline of 90% shortly after launch. The venture has raised serious concerns regarding insider trading, manipulation, and the legitimacy of its claims to bolster Argentina’s economy. Given Milei’s previous connection to a fraudulent crypto venture, skepticism about his commitment to ethical cryptocurrency practices remains prevalent.

Original Source: www.dlnews.com