Argentina’s meme token news has shaken the crypto scene, and President Javier Milei may be facing impeachment related to the LIBRA cryptocurrency. This token, which was touted as a private initiative to bolster small businesses, once soared to a $4.5 billion market cap before plummeting to $200 million.
Milei promoted LIBRA on his official X account, claiming it aimed to assist Argentina’s faltering economy. However, doubts surfaced swiftly as the project’s credibility was questioned. Just hours after the launch, insiders cashed out $87.4 million, resulting in heavy losses for retail investors.
The country’s fintech chamber has raised concerns, suggesting that the LIBRA situation might be a “rug pull”—a tactic where developers abandon a project post-sale.
Milei’s Promotion of Argentina Meme Coin LIBRA Ends in Disaster
Following the fallout, Milei deleted his promotional post and claimed ignorance regarding the details of the situation, further stoking controversy. His past involvement in the Coinx World crypto scam in 2022, where he backed a fraudulent investment firm, has drawn additional scrutiny.
Opposition lawmakers, notably Leandro Santoro, have called for his impeachment, arguing it represents a significant international embarrassment and financial negligence. The collapse of LIBRA has had wider consequences, impacting the meme coin market at large, which saw over $6 billion wiped out in just three hours.
Additionally, the TRUMP coin suffered a decrease of $500 million in market cap due to diminished liquidity, shedding light on a potential emerging geopolitical struggle within the meme coin sector.
Within 3 hours of the launch, insiders in $LIBRA began cashing out.
According to Bubblemaps, $87.4 million was cashed out within the first three hours. Furthermore, 82% of $LIBRA was controlled by one cluster, with no public tokenomics provided.
As criticism mounts, Julian Peh, the founder of Kip Protocol and associated with Project Libertad behind LIBRA, maintains that no funds have been liquidated, asserting that the project is continuing without detailing how it will regain investor trust.
This incident exacerbates concerns about the reckless blend of celebrity influence and cryptocurrency, highlighting how high-profile endorsements, like those from Milei or others, propagate a cycle of inflated investments at the expense of uninformed retail investors.
The swift rise and fall of LIBRA serve as a classic example of how opportunistic figures exploit their political credibility to orchestrate temporary market spikes, leaving investors vulnerable. This matter underscores a critical need for regulatory clarity, especially in Argentina, where the existing legal structure for digital assets is inadequate.
The LIBRA crisis may pave the way for regulatory action against unauthorized token promotions and warrant public officials’ accountability for their financial endorsements—though current signals from the new SEC crypto unit head suggest that Trump remains immune for now.
As Javier Milei finds himself besieged by legal and political challenges, his reputation stands at a pivotal crossroads. How he navigates this turmoil and whether he evades impeachment remain uncertain. For the moment, Argentina’s crypto landscape reels from another prominent collapse.
