- Libra token lost 94% of its value after Milei’s endorsement
- Lawmakers demand Milei’s impeachment
- Onchain data reveals insider wallets cashed out $107 million before the token’s collapse.
Argentine President Javier Milei faces scrutiny after endorsing the Libra (LIBRA) token, which lost 94% of its value in hours. Lawmakers and analysts believe the project may have been an insider scam. Investors and political opponents are demanding answers about the president’s role in the incident.
The Solana-based Libra token gained attention after Milei promoted it in a post on X, formerly Twitter. His post included the project’s website and contract address, attracting many investors. The token’s creators claimed the project aimed to support Argentina’s economy through private investments.
Lawmakers Demand Impeachment as Investigation Continues
The token’s value surged to $4.56 billion before crashing to $257 million in just 11 hours. This sudden decline raised suspicions of insider trading and fraudulent activities. Lawmakers accused Milei of misleading the public by endorsing a risky and unverified investment.
Opposition leader Leandro Santoro called for the president’s impeachment, citing international embarrassment. Argentina’s fintech chamber also acknowledged the possibility of a rug pull, adding pressure on Milei. The political opposition is using the incident to question Milei’s leadership and decision-making.
Insider Wallets Cashed Out Before Token Collapse
Onchain intelligence firm Lookonchain reported that at least eight wallets linked to Libra’s team withdrew over $107 million. These wallets liquidated 57.6 million USD Coin (USDC) and 249,671 Solana (SOL) before the price crashed. The transactions took place within three hours of the token’s launch.
Blockchain research firm Bubblemaps also found major flaws in Libra’s tokenomics. Investigators discovered that 82% of the token’s supply was unlocked and available for sale. Analysts believe this lack of proper controls may have been part of an insider exit strategy.
Political Memecoins Face Rising Concerns
Milei’s involvement in the Libra controversy adds to a growing trend of political figures endorsing cryptocurrencies. The U.S. President Donald Trump launched the TRUMP token in January, followed by First Lady Melania Trump’s MELANIA token. These political endorsements have attracted both investors and critics.
Despite growing interest in political memecoins, analysts warn of potential risks. The Libra token collapse demonstrates why unregulated cryptocurrency investments remain a risky proposition. Experts highly recommend that all investors undertake comprehensive investigation before they make financial contributions to projects.
