Milei’s Controversial LIBRA Token Launch Triggers Stock Market…

Argentina’s stock market faced a 5% drop as President Javier Milei was sued over the LIBRA token launch. The S&P Merval index struggled to recover amid allegations of fraud linked to the project. Despite a massive trading debut, LIBRA saw a significant decline in value hours after its launch, leading to investigation and renewed scrutiny on Milei’s involvement.

Argentina’s stock market experienced a significant decline as President Javier Milei became embroiled in controversy over the launch of the LIBRA token, a meme coin. On February 17, the S&P Merval index dropped by 5% at the start of trading, although it managed to partially recover by 2%, remaining below the previous week’s closing value. Analysts speculate that a legal complaint lodged against President Milei contributed to this market dip.

The LIBRA token was initiated on the Solana-based platform Pump.fun, following Milei’s public endorsement, which he later deleted amid the ensuing turmoil. He suggested the token could revitalize Argentina’s economy and assist small businesses. However, the speculative nature of meme coins drew considerable attention, particularly after U.S. President Donald Trump’s TRUMP token surged in value within a short time.

Despite initial trading enthusiasm that saw LIBRA reach a valuation of $4 billion, the token plummeted by 90% shortly after its launch. In response to the allegations of fraud tied to his endorsement, Milei’s administration denied having any prior knowledge of the token’s launch, claiming they were not involved in insider trading.

Hayden Davis, CEO of Kelsier Ventures and an advisor to President Milei, acknowledged that his team had engaged in practices typically associated with new token launches. He reportedly withdrew around $100 million from LIBRA’s liquidity, though he stated his intentions to address these funds in consultation with Milei and the Argentine government. Following this, the value of LIBRA increased by over 60%, spurred by Milei’s unexpected reposting of a tutorial related to the token.

In summary, President Javier Milei’s involvement with the LIBRA meme token has led to substantial fluctuations in Argentina’s stock market and raised legal challenges regarding his conduct. The S&P Merval index’s sharp decline reflects market insecurities related to political endorsements of speculative assets. Moreover, allegations against Milei may have contributed to the volatility observed in token valuations.

Original Source: crypto.news