Argentina meme coin news has rocked the crypto market, and now Javier Milei might face impeachment over LIBRA crypto. Will they ever learn?
Marketed as a private initiative to support small businesses, LIBRA surged to a $4.5 billion market cap before crashing to $200 million.
Milei posted about LIBRA on his official X account, claiming it was a non-government project designed to help Argentina’s struggling economy.
However, skepticism arose immediately, with many questioning the legitimacy of the token. Within hours, insiders cashed out $87.4 million, leaving retail investors with significant losses.
The country’s fintech chamber suggested the LIBRA case could be a “rug pull,” a scheme where developers abandon a project after profiting from its initial sales.
(Source)
Milei’s sudden deletion of the post and claim that he was “unaware of the details” only fueled further controversy. His previous involvement in the Coinx World crypto scandal in 2022, where he endorsed a fraudulent investment firm, has intensified criticism.
Opposition lawmakers, including Leandro Santoro, have called for impeachment, citing international embarrassment and financial irresponsibility.
The LIBRA collapse had broader implications than just Argentina. The sudden liquidity drain impacted the wider meme coin market, with over $6 billion erased in just three hours, just as the market appeared to be recovering.
The TRUMP coin also saw a sharp decline of $500 million in market cap due to reduced liquidity – highlighting a potential new geopolitical battleground in the meme coin space.
Within 3 hours of the launch, insiders in $LIBRA began cashing out.
According to Bubblemaps, $87.4 MILLION was cashed out within the first 3 hours.
Furthermore, 82% of $LIBRA was held in one cluster and no tokenomics were shared with the public.
But it gets even worse. pic.twitter.com/3WnPf4Mhy2
— The Kobeissi Letter (@KobeissiLetter) February 15, 2025
On-chain data from Bubblemaps revealed that fewer than ten wallets controlled 82% of the LIBRA supply, indicating clear manipulation.
Large holders reportedly orchestrated liquidity pool movements on Meteora, extracting profits while retail investors suffered massive losses.
Meme Coin Market Fallout and Political Consequences For Arentina’s Pro-Crypto President Javier Milei
Despite the backlash, Julian Peh, founder of Kip Protocol and an alleged key figure in Project Libertad (the team behind LIBRA), claimed no funds were sold. Peh insisted that the project was still ongoing but failed to provide details on how it would recover investor confidence.
This debacle underscores a growing problem within the cryptocurrency space: the reckless intersection of celebrity reach and blockchain technology.
When high-profile figures like Milei, Trump, or even Hawk Tuah Girl Hailey Welch attach their name to speculative tokens, it fuels a dangerous cycle of hype-driven investment without accountability.
LIBRA’s rapid rise and fall exemplify how opportunistic players leverage political credibility to manufacture short-lived market pumps, offloading the risk onto uninformed retail investors.
Furthermore, this event is a stark reminder that crypto remains a battleground for regulatory uncertainty. Argentina’s lack of clear legal frameworks around digital assets escalated this crisis unchecked.
As global regulators scramble to address such abuses, the LIBRA meltdown could accelerate crackdowns on unauthorized token promotions and set a precedent for holding public officials accountable for financial endorsements – although overtures from the new head of the SEC crypto unit suggest Trump is in the clear for now.
Meanwhile, on a cold Weekend in Buenos Aires, and with mounting legal and political pressure, Milei’s credibility faces its biggest test yet.
Whether he can distance himself from this fiasco or face impeachment remains to be seen. Still, Argentina’s crypto market remains shaken for now, and investors are left reeling from yet another high-profile collapse.
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