Quick Facts:
- Involvement: Dave Portnoy initially joined $LIBRA as an advisor and token holder.
- Token Return: He returned approximately 6 million $LIBRA tokens to the project’s founder.
- Concerns: Portnoy cited transparency issues and potential risks as reasons for his withdrawal.
Barstool Sports founder Dave Portnoy has shed new light on the controversy surrounding the launch of the $LIBRA token, a project that has entangled Argentine President Javier Milei, prompting calls for his impeachment from political opponents.
Speaking during an X Space on Sunday, Portnoy shared that he was initially prepared to join the $LIBRA project as an advisor and had purchased tokens at launch. However, his involvement quickly became contentious when he received a gift of approximately 6 million $LIBRA tokens from the project’s advisor, Hayden Davis, who instructed him not to disclose the gift publicly. Concerned by the secrecy, Portnoy returned the tokens, distancing himself from the project.
The revelation adds to the ongoing drama around $LIBRA, especially as the token’s ties to President Milei fuel political backlash in Argentina.
During the Spaces, Portnoy clarified that a wallet linked to him showed no record of receiving the disputed 6 million $LIBRA tokens, but he confirmed owning other wallets. Portnoy also weighed in on the sudden collapse of the project’s momentum following Argentine President Javier Milei’s withdrawal of support. He suggested that Davis, may have been blindsided by Milei’s exit.
“I swear he thought it was the real deal…I’ve known him for two to three weeks, so what do I f—ing know.”
Davis Vows $LIBRA Buyback and Burn After Collapse
Hayden Davis, the advisor to the $LIBRA token project, has shared his version of events following the project’s collapse, placing the blame on Argentine President Javier Milei’s sudden withdrawal of support. In a video and statement posted on X on Saturday night, Davis announced plans to use project revenues from fees, farming, and other sources to buy back and burn $LIBRA tokens, aiming to restore value and investor confidence.
According to Davis, Milei’s disavowal of the project caused a wave of panic selling, triggering a catastrophic price collapse.
“When Milei and his team deleted their posts, investors who had purchased the token based on their trust in his endorsement felt betrayed,” Davis explained.
The fallout was swift and severe. Following Milei’s post, published at 10:38 p.m. EST, $LIBRA’s market capitalization plunged from its peak of approximately $4.5 billion to around $500 million, according to Dexscreener. The sell-off accelerated after reports surfaced alleging that $LIBRA insiders were cashing out their holdings.
Davis denied any misuse of project funds and distanced himself from Milei’s associates.
“As the custodian—not the owner—of these funds, I do not feel comfortable transferring them to Milei’s associates or the KIP team,” he stated.
Instead, Davis pledged to reinvest up to $100 million from project-controlled funds back into the token and burn all repurchased supply to reduce circulating tokens and stabilize the price.
Despite Davis’s proposed recovery plan, $LIBRA’s market capitalization remains around $384 million as at the time of writing.
Political Firestorm Erupts in Argentina over the $LIBRA Token Launch
The fallout from the $LIBRA token controversy has triggered a major political backlash for Argentine President Javier Milei, with opponents condemning his involvement and branding the situation an “unprecedented scandal.”
Facing mounting pressure, Milei’s administration announced an official investigation into the token’s launch. The inquiry aims to address concerns over whether Milei’s perceived endorsement of $LIBRA misled investors and contributed to the market chaos that followed.
