Argentina’s President Javier Milei is facing serious allegations after a cryptocurrency he promoted collapsed within a short time. However, behind the LIBRA scandal lies a professional network of crypto experts who have made hundreds of millions with memecoins.
Over the weekend, Argentine President Javier Milei posted on his X (formerly Twitter) profile about a cryptocurrency, LIBRA, which was supposed to boost Argentina’s economy. The memecoin, based on the Solana blockchain, immediately skyrocketed to a valuation of over $1 billion. However, within hours, its value plummeted, leading to massive losses for investors. Critics accused Milei of indirectly participating in a fraudulent "rug pull."
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Details about the LIBRA token
LIBRA was presented as an innovative cryptocurrency aimed at supporting local entrepreneurs in Argentina. The developers claimed that the token was backed by a unique economic model and low transaction costs. According to blockchain analyses, the creators acquired a large portion of the tokens within the first few seconds ("sniping"). Milei merely promoted the cryptocurrency on social media, which allowed the creators to secure massive profits exceeding $100 million before the token's value collapsed.
Many investors who had hoped for long-term value appreciation were caught off guard and suffered significant losses. The rapid depreciation pointed to a classic "pump-and-dump" scheme—a manipulation strategy where prices are artificially inflated before insiders cash out at a profit.
Not a new scheme
The LIBRA token represents the peak of the memecoin mania on the Solana blockchain. The creators of this cryptocurrency were not only involved in LIBRA. A network of professional blockchain experts also played a role in launching the TRUMP memecoin, MELANIA, and other influencer-backed memecoins, as investigative journalist Coffeezilla confirmed in an interview with one of LIBRA’s creators. In total, insiders have profited by billions from launching such cryptocurrencies.
These actors entice memecoin front figures with various promises, while those individuals often lack a proper understanding of cryptocurrencies. In Milei’s case, the organizers lured him with the promise of investing millions into Argentine startups. As a result, the president denied any responsibility and withdrew his support shortly after the launch.
Memecoins: playing with fire
While critics immediately attacked Milei, buyers of these memecoins should also acknowledge their own responsibility. Undoubtedly, the Argentine president acted recklessly. However, anyone purchasing memecoins must be aware of the risks. This type of cryptocurrency is deliberately designed to have no real utility and serves only as a speculative asset. The involvement of public figures in such schemes is nothing new. Hopefully, the LIBRA scandal serves as a wake-up call for the industry, which has been heavily focused on the memecoin sector over the past twelve months while ignoring projects with actual utility.
