Argentina’s President Promotes LIBRA Memecoin, Deletes Post as Token Falls 90% Amid Scam Fears

Highlights:

• Milei’s X account promoted LIBRA, later deleting the post amid scam concerns.
• LIBRA crashed 90% after legitimacy doubts, wiping millions from investors’ holdings.
• Insider trading allegations surfaced as wallets linked to the LIBRA team profited massively.

Argentina’s President Javier Milei’s X account promoted the Solana memecoin LIBRA late Friday on X, stating that the funds raised would support small and medium-sized businesses in Argentina. He emphasized that the project was privately managed and later clarified via text message that he would not receive any personal financial benefit from the initiative.

The token’s name seemed linked to Milei’s political party, La Libertad Avanza, or his libertarian views. Milei told Bloomberg he met KIP Protocol, the company behind the coin, months ago. A blog post on its website shows a selfie of its co-founder with the Argentine president, dated Oct. 20.

As concerns grew, X’s community notes warned about the token, highlighting crypto scams like “rug pulls,” where developers disappear after investors buy in. Five hours after his post, Milei deleted it. He stated that he was unaware of the project’s details and decided to stop supporting it after learning more.

Javier Milei wrote:

“A few hours ago I posted a tweet, as I have so many other times, supporting a supposed private enterprise with which I obviously have no connection whatsoever. I was not aware of the details of the project and after having become aware of it I decided not to continue spreading the word.” 

LIBRA Memecoin Crashes 90% as Legitimacy Concerns Trigger Sell-Off

The token saw a rapid surge in buyers, pushing its potential market cap close to $4.5 billion. However, doubts about its legitimacy led to massive sell-offs, causing a sharp price crash. According to DexScreener data, LIBRA’s market cap stands at $249.1 million, trading at $0.2479 USDC, down 90% from its peak.

Traders are questioning whether it will recover or keep falling. Investors await updates, with some expecting stability while others fearing a pump-and-dump scheme. Investors have lost millions due to the LIBRA token crash. Experts say nearly all non-insiders faced losses. One trader spent $2.85M to buy 1.11M LIBRA but saw its value drop to $781K, losing $2 million in just two hours.

Many people have suffered significant losses on $LIBRA!

A trader spent 14,214 $SOL($2.85M) to buy 1.11M $LIBRA and sold it for only 3,954 $SOL($781K), losing 10,260 $SOL($2.07M) in just 2 hours!

Address:https://t.co/Z1mtKknJZe pic.twitter.com/3giLhLm7Bn

— Lookonchain (@lookonchain) February 15, 2025

However, this isn’t Milei’s first controversy. In 2021, he faced a similar situation when he endorsed CoinX, an alleged Ponzi scheme that claimed to offer multiple-fold returns through AI-assisted trading. The platform collapsed, causing investors to lose millions. As a result, victims filed lawsuits against Milei.

LIBRA Token Faces Insider Trading Allegations

LookOnChain reports that 8 wallets linked to the LIBRA team withdrew around $107 million by adding and removing liquidity and collecting fees. They obtained 57.6 million USDC and 249,671 SOL (about $49.7 million).

The $LIBRA team has cashed out $107M!😱

8 wallets related to the $LIBRA team have obtained 57.6M $USDC and 249,671 $SOL($49.7M) by adding liquidity, removing liquidity and claiming fees.

Wallets:
DefcyKc4yAjRsCLZjdxWuSUzVohXtLna9g22y3pBCm2z… pic.twitter.com/vpd7nGyMHQ

— Lookonchain (@lookonchain) February 15, 2025

Other findings suggest the LIBRA launch was a coordinated scheme to defraud investors. Blockchain sleuth EmberCN also uncovered insider trading among those involved with the meme coin. EmberCN revealed that three wallets made instant purchases of LIBRA the moment President Milei promoted it. These addresses withdrew funds from centralized exchanges hours earlier, likely preparing for the trade.

The wallets “Gr3eiF,”  “HyzGo2,” and “2NHGzd”acquired 3.34M, 1.97M, and 5.1M LIBRA for $1M, $500K, and $1.1M USDC, respectively. Analysis indicates they earned at least $20.18M from the trade.

The crypto community reacted to Milei’s role in the LIBRA memecoin saga. Many were skeptical about leaders promoting meme coins. Into The Cryptoverse CEO, Benjamin Cowen called the launch unbelievable but said the US president did something similar. Sonic Lab co-founder Andre Cronje criticized the shifting crypto narrative. He said the industry is moving from utility to presidents and countries dumping tokens “in full crime mode.”