In recent headlines, Argentina’s president, Javier Milei, has found himself at the center of a significant controversy following a now-deleted tweet promoting a memecoin known as Libra. Initially hailed as a potential boon for the Argentine economy, the cryptocurrency surged to an astounding $4.4 billion market cap before experiencing a staggering decline of more than 95%.
In his tweet, which has since been removed, Milei claimed, “This is a private project dedicated to encouraging the growth of the Argentine economy,” while also linking to a Solana contract address tied to the Libra token. The immediate aftermath of the tweet saw Libra’s value skyrocket by over 2,000% within a mere 40 minutes. However, this rapid ascent was short-lived, as many early holders began cashing out, leading to a dramatic fall.
The fallout from this incident has been scrutinized by industry observers, particularly through a series of BubbleMaps screenshots shared by the X account KobeissiLetter. These images suggested that alleged insiders manufactured liquidity through one-sided pools on Metora, enabling them to withdraw both SOL and stablecoins while the frenzy ensued.
During its launch, trading volume for Libra peaked at an impressive $1.1 billion. However, discrepancies in purchase and sale activity suggested manipulation, with 74,500 individual buy orders contrasted by just 28,900 sales. This imbalance highlighted the disparity in activity, indicating that larger sell orders effectively stifled retail trading momentum.
Subsequently, Milei addressed the fallout from his tweet on X, clarifying that he was unfamiliar with the intricacies of the Libra project. He stated, “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 (that is why I deleted the tweet).” This remark underscores the importance of due diligence, particularly for public figures in the volatile realm of cryptocurrency.
The repercussions of the Libra sell-off extended well beyond its immediate implications, causing a ripple effect across the wider memecoin market. Notably, the TRUMP token saw a staggering loss of $500 million from its market cap in a sharp 30-minute window following Libra’s decline. Such volatility brings to light the risks associated with investing in memecoins, especially when influenced by the endorsements of prominent figures.
As events unfold in the cryptocurrency landscape, this incident serves as a cautionary tale for investors and public figures alike. The importance of careful research and responsible communication cannot be overstated in a market characterized by extreme volatility and rapid change.
