Argentine President Javier Milei has become embroiled in a massive memecoin scam after promoting the Libra token on the Solana blockchain. Within hours, the token’s value collapsed by 95%, leading to accusations of insider trading and market manipulation.
From Hype to Collapse: The Libra Rug Pull
Milei sparked the frenzy by posting on X (formerly Twitter) about the Libra token, claiming it was a private initiative designed to support the Argentine economy. In the same post, he even shared the contract address of the token on Solana.
- Following Milei’s tweet, Libra’s market cap soared to $4.5 billion, as speculators rushed to buy in.
- Insiders quickly began selling, causing the price to plummet within hours.
- Milei deleted his tweet, later claiming he was unaware of the project’s true nature.
- This triggered more panic selling, leading to a 95% price crash, reducing the token’s market cap to under $200 million.
In just seven hours, over $4 billion in market value vanished, making it one of the biggest crypto rug pulls in recent history.
A Classic Rug Pull: Blockchain Analysis Exposes Fraudulent Activity
Blockchain analytics firm Bubblemaps quickly flagged suspicious patterns in Libra’s tokenomics, indicating clear signs of market manipulation:
- 82% of the token supply was controlled by a single cluster—a massive red flag.
- No lock-up period—insiders could freely sell their holdings immediately.
- Over $80 million in profits was siphoned off within hours, leaving retail investors with massive losses.
As news of the scandal spread, Argentina’s political opposition seized the opportunity to demand Milei’s impeachment, accusing him of either gross negligence or outright corruption.
Parallels to the TRUMP Token: The Speculative Rollercoaster Continues
The Libra collapse draws comparisons to the TRUMP token, a speculative memecoin launched ahead of Donald Trump’s 2024 presidential campaign. While the TRUMP token did not involve fraud, it showcased the extreme volatility of memecoins:
- TRUMP token surged to $75 at its peak, driven by hype and speculation.
- It later crashed to $15, an 80% decline.
- Currently trading around $19, still far below its all-time high.
Like Libra, TRUMP demonstrated how memecoins can create massive paper gains, only to collapse just as quickly—often leaving small investors with heavy losses.
Warning: Memecoins Are Pure Speculation
The Libra scandal is yet another example of how memecoins are often subject to pump-and-dump schemes, where insiders cash out at the expense of retail investors.
While some traders profit from these speculative assets, most end up losing money. Anyone considering an investment in memecoins should treat it as gambling—and never risk more than they can afford to lose.
