Argentine President Javier Milei Launches Investigation Into Libra Crypto

Libra crypto, a Solana-native token, saw 94% crash after market debut owing to massive insider sales of over $107 million.

This has also kicked-up a world-wide uproar and political nightmare for Argentine President, Javier Milei due to having initially endorsed the coin.

He later withdrew his support stating,

“I was not familiar with the details of the project…and after having informed myself I decided not to continue disseminating it…”

As per on-chain data analytics platform, Lookonchain, 11 insider wallets dumped LIBRA token to make profits to the tune of $43.8M.

Liquidity manipulation of adding and removing liquidity and fee claims by LIBRA team wallets resulted in the withdrawal of 57.6 million USDC and 249,671 SOL tokens worth $49.7 million.

DexScreener data indicates that the LIBRA token reached its maximum price point before sellers cleared out available funds, leading to its price crash.

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Within three hours, the market value plummeted by over $4.6 billion before crashing to an insignificant figure of its former size.

Token investors who bought at the peak suffered substantial financial losses that amounted to millions for some traders.

Javier Milei Withdraws Endorsement After Libra Crypto Token’s Collapse

At first, Argentinian President Javier Milei had openly endorsed Libra crypto. He had even publicly stated that the coin would support the national economy.

With the attention, the coin saw a sudden boost in price but then it soon came crashing down.

Milei has now launched an investigation into the coin, having created an ‘Investigation Task Unit’

Blockchain analysts identified significant flaws in LIBRA’s design and its vulnerabilities to possible manipulation issues before the system experienced its catastrophic failure.

Initial insiders received more critical portions of the LIBRA token supply during an early phase.

This enabled them to manipulate prices and wash out significant amounts through massive sell-offs.

Market Impact and Aftermath

The market experienced coordinated liquidation activities almost immediately after the launch became public.

Lookonchain analyzed a transaction where an investor spent 14,214 SOL worth approximately $2.85 million to purchase 1.11 million LIBRA tokens before losing $2.07 million (10,260 SOL) in mere two hours by selling them for 3,954 SOL ($781,000).

The sudden free fall of the LIBRA token affected sentiment throughout the market.

After LIBRA crypto crashed, the TRUMP token experienced a significant loss of about $500 million in market capitalization.

Furthermore, instances of traders using insider info to make big profits continue to come to light.

This has not been the only case. As earlier reported, a ‘Squid Game’ token (SQUID) on the Base blockchain launched by scammers drove down 99% within a few hours, thus resulting in significant investor losses.