Argentine President Milei’s $LIBRA Token Plummets 95% After $107 Million Sell-Off by Team
The $LIBRA token, promoted by Argentine President Javier Milei, skyrocketed to a market capitalization of $4.5 billion just hours after its launch. However, shortly after, eight wallets associated with the $LIBRA team liquidated $107 million worth of tokens, resulting in a 95% collapse in the token’s value, now standing at $232 million.
Javier Milei: From Crypto Ambassador to Accused
Amidst widespread outrage, Milei quickly deleted his post and withdrew his support for the project, claiming to have been unaware of the details and having no connection to the $LIBRA team. However, the Argentine presidency confirmed a meeting between Milei and KIP Protocol, the company associated with the project, in October 2024. This revelation, combined with investor anger, prompted political opponents, including Deputy Leandro Santoro, to demand Milei’s removal. In response, Milei requested a corruption investigation into the entire government, including himself.
Hayden Mark Davis: The Insider at the Center of the Scandal
Hayden Mark Davis, touted as a launch advisor, was quickly identified by the crypto community as one of the main culprits behind the rug pull. After Milei’s post was deleted and the token collapsed, Davis ironically blamed Milei for the loss of investor confidence while publicly admitting to profiting from sales. He, however, promised to ‘reinvest’ these funds into the token’s chart, a statement ridiculed by the community as a desperate attempt to improve his image.
Ignored Warning Signs
Blockchain analysis firms, including Bubblemaps, had previously warned that 82% of the total supply of $LIBRA was unlocked at launch, allowing insiders to sell off their tokens massively. The lack of transparency in the project’s tokenomics was already a major red flag. Despite this, the enthusiasm generated by presidential approval was enough to attract investors, replicating a common pattern in the memecoin ecosystem where trust and support play a more critical role than fundamentals.
A Scandal with Political and Economic Consequences
This fiasco, occurring in an already fragile economic context for Argentina, has not only ruined many investors but also tarnished Milei’s reputation, despite being seen as an ally of crypto innovation. As the investigation is ongoing, the $LIBRA incident once again highlights the dangers of opportunistic crypto projects and the importance of increased due diligence, even when influential figures lend their support.
