Argentina’s President Javier Milei has retracted his endorsement of the LIBRA meme token after its value plummeted by 85%, admitting that he had not conducted due diligence before promoting it. Milei stated he had no connection to the project and swiftly deleted his social media posts endorsing the token after learning more about its operations.
“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,” Milei wrote on X. “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).”
LIBRA, marketed as a key component of the Viva La Libertad Project aimed at bolstering Argentina’s economy, saw an initial surge before investors began questioning its legitimacy. Blockchain analysis revealed that 82% of the token’s supply was concentrated in a handful of wallets, signaling concerns over centralized control.
On-chain data visualization firm Bubblemaps reported that the token’s developers removed $87 million in USDC and SOL from liquidity pools, exacerbating the price collapse. “LIBRA is down 85% because the devs absorbed $87M of buy pressure into their pockets. $500M more to go,” Bubblemaps posted on X.
Milei Faces Scrutiny Over Crypto Involvement
Milei’s involvement in the LIBRA controversy has drawn renewed criticism due to his past endorsement of CoinX, an alleged crypto Ponzi scheme. In 2021, Milei promoted CoinX on Instagram, urging Argentinians to invest in the platform as a means to combat inflation. Investors later reported that promised returns never materialized, prompting Argentina’s National Securities Commission to order the platform to cease operations.
Several investors filed lawsuits against Milei, claiming damages of approximately $300,000. Critics have pointed to these past incidents as a pattern of reckless crypto endorsements by the president.
Despite the backlash, Milei dismissed his critics as opportunistic. “To the filthy rats of the political caste who want to take advantage of this situation to do harm, I want to say that every day they confirm how vile politicians are, and they increase our conviction to kick them in the ass,” he said.
LIBRA Token’s Rise and Fall
The LIBRA token initially saw a meteoric rise following Milei’s endorsement, reaching a peak valuation of $4.5 billion. The project’s website claimed the initiative was designed to support small and medium-sized businesses in Argentina. However, concerns over liquidity manipulation and insider trading quickly overshadowed its purported mission.
Crypto analytics firm Chainalysis noted irregularities in the token’s launch, including its first funding originating from an instant swap service rather than an established exchange. Additionally, key insiders reportedly profited an estimated $20 million by strategically trading LIBRA tokens before Milei’s public promotion.
While the Argentine leader initially framed LIBRA as a symbol of free-market innovation, its collapse has added to growing skepticism over the intersection of politics and cryptocurrency.
