$4.5B Frenzy Ends in 90% Crash! LIBRA Memecoin Scandal

Argentina’s President Javier Milei is under fire after his X account promoted the Solana-based memecoin LIBRA, sparking controversy and financial chaos.

Initially marketed as an economic stimulus project for Argentina, the token skyrocketed in value before crashing over 90% in just five hours, wiping out $4.4 billion in market capitalization.

As allegations of insider trading and manipulation emerge, the incident has raised concerns about memecoin speculation, regulatory oversight, and Milei’s reputation.

LIBRA Memecoin Scandal: From $4.5 Billion to Collapse

📌 On Friday, Milei announced Free Argentina, describing it as an initiative to stimulate the Argentine economy, finance local businesses, and attract foreign investment.

📌 His post included the $LIBRA cashtag and the Solana contract address, leading many to believe the project had official government backing.

🔹 LIBRA’s price surged, reaching a $4.5 billion market cap as investors rushed to buy in.
🔹 Hours later, legal concerns surfaced, causing a 90% crash—from $4.50 to $0.50 in just five hours.
🔹 At the time of writing, LIBRA is trading at $0.23.

The incident triggered a wave of criticism and speculation, with many questioning the legitimacy of the project.

Milei Distances Himself From LIBRA After Backlash

🚨 Following the token’s dramatic collapse, Milei retracted his endorsement, stating that he was unaware of the project’s full details and immediately withdrew support upon learning more.

📌 He also accused political opponents of using the situation to damage his reputation.

However, this has done little to calm the controversy, as many believe the endorsement—intentional or not—played a role in the massive speculation surrounding LIBRA.

Insider Trading Allegations Shake LIBRA’s Credibility

🔹 Blockchain analysis identified insider trading activity, with wallets linked to the project’s creators selling off massive amounts of LIBRA before the crash.

📌 Key findings:
✅ Eight project-connected wallets dumped $107 million by manipulating liquidity.
✅ Insiders pocketed at least $20.18 million by strategically trading LIBRA.
✅ A single wallet earned $8.7 million in just one hour during the token’s surge.

📌 Massive USDC and SOL transfers from exchanges like Binance and KuCoin were detected hours before Milei’s announcement, suggesting that some investors may have known about the token’s pump in advance.

KIP Protocol Claims Responsibility—Denies Milei’s Involvement

🔹 KIP Protocol, the developer behind LIBRA, released a statement denying Milei’s official involvement.

📌 According to KIP Protocol, LIBRA is part of their “Viva la Libertad” initiative, which funds personal projects in Argentina.

However, critics argue that the lack of transparency, the rushed launch, and the absence of multi-signature wallets indicate that the project may have been a scam.

🔹 Crypto researcher Conor labeled LIBRA as highly suspicious, citing its association with no-KYC exchanges and questionable operational protocols.

Community Reactions: Memecoins Under Scrutiny

🔹 The LIBRA debacle has ignited a broader discussion about the dangers of memecoin speculation.

📌 Notable crypto figure Andre Cronje criticized the situation, stating that memecoins like LIBRA encourage speculation rather than real blockchain adoption.

📌 While some investors believed LIBRA had official backing, others saw it as another high-risk speculative asset.

🚨 Regardless of intent, the incident has tarnished Milei’s reputation and highlighted the dangers of unregulated memecoin promotions.

Conclusion: Will LIBRA Trigger Stricter Crypto Regulations?

📌 Milei’s X account promoted the Solana-based memecoin LIBRA, triggering massive speculation.
📌 LIBRA surged to a $4.5 billion market cap before crashing 90% within hours.
📌 Blockchain data suggests insider trading, with $107 million dumped by project-linked wallets.
📌 KIP Protocol denies Milei’s involvement but faces criticism over transparency.
📌 The LIBRA controversy raises concerns about memecoin regulation and political endorsements.

As crypto markets react to the scandal, will this lead to stricter oversight of memecoins and influencer-driven promotions? 🚀