A memecoin briefly backed by Argentinian President Javier Milei spectacularly crashed, leaving insiders with a massive $107 million profit.
The Libra Coin Debacle
Milei initially tweeted support for LIBRA, a new cryptocurrency supposedly designed to boost Argentina’s economy. He later deleted the tweet and distanced himself from the project, stating he wasn’t aware of the project’s details. His statement included some strong words about his political opponents.
Within hours of its launch, LIBRA’s market cap soared to a staggering $4 billion before collapsing. The price plummeted, leaving the coin trading at 92% below its peak.
Insiders Cash Out Big
Blockchain analytics firm Lookonchain revealed that the people behind LIBRA quickly cashed out a massive amount of cryptocurrency. Eight wallets linked to the project’s creators reportedly sold off their holdings, netting over $107 million in USDC and SOL. This involved adding and removing liquidity from exchanges and collecting trading fees.
A Cautionary Tale
The LIBRA debacle serves as a stark reminder of the risks involved in investing in cryptocurrencies, especially memecoins. The rapid rise and fall of LIBRA, coupled with the significant profits made by insiders before the crash, highlights the potential for manipulation and significant losses for retail investors. Always do your own research before investing in any cryptocurrency.
