LIBRA Token Crashes 85% After Milei’s Promotion—Insiders Cash Out Millions

Argentine President Javier Milei promoted the LIBRA token, saying it would help small businesses. But instead of excitement, his post on X caused concern, with many suspecting a possible scam. Seeing the backlash, Milei quickly deleted his post, insisting he had no financial gain from the project.

Milei has been trying to fix Argentina’s struggling economy, but foreign investors remain hesitant. While inflation is cooling and reforms are underway, businesses are still leaving. The country also faces challenges like U.S. trade tariffs and problems with key industries, making economic recovery uncertain.

From a $4.5 Billion Hype to a Sudden Collapse

LIBRA looked promising at first, hitting a massive $4.5 billion valuation within hours. But the excitement didn’t last. Soon after launch, developers reportedly withdrew $87 million in USDC and SOL from the project, causing the token’s price to drop 85%. Investors panicked, and those who bought in early saw huge losses—on average, over 56% of their initial investment.

Another big red flag? 

Blockchain analysts quickly noticed some unusual activity. On-chain expert EmberCN found that certain wallets had withdrawn funds from exchanges before Milei’s post, bought LIBRA right after the promotion, and then sold once the price spiked. These insiders reportedly made around $20 million in profit.

About 82% of LIBRA’s supply is controlled by just a few connected wallets. This means a small group of people have too much power over the token’s price, which could be used to manipulate the market.

Responding to the controversy, justin sun justin sun Justin Sun is the founder of Tron and CEO of BitTorrent.He holds a graduate degree in East Asia studies from the University of Pennsylvania and a B.A. in history from Peking University. He has become the most renowned figure in the blockchain space, known for his intricate advertising strategies. Sun founded the blockchain-based operating platform TRON and launched the TRX token in 2017. In September 2017 his company Tron held an initial coin offering (ICO) for the TRX token.Sun also owns the crypto exchange Poloniex and is affiliated with the crypto exchange HTX (formerly Huobi). He is an ambassador, Permanent Representative of Grenada to the WTO, and a Geneva-based Chinese-Grenadian negotiator, business visionary, and business chief. In 2015 he was named CNTV’s most essential new business person and was named in Forbes China 30 Under 30 from 2015 through 2017.
Detail
Organization: TRONLocation: Geneva, SwitzerlandEducation: Master of Arts (M.A.) in Political Economy from the University of Pennsylvania (2011 – 2013).Skills: blockchain development, entrepreneurship, strategic vision, market influence, and networking
Awards
Crypto Entrepreneur of the Year: Given at Blockchain Life 2023 in recognition of his leadership at HTX and contributions to the cryptocurrency space.Centralized Exchange of the Year: Awarded to HTX at Blockchain Life 2023, under his leadership.Metaverse Navigator Award: Given during the Wiki Finance Expo in November 2023 to recognize his contributions to the metaverse domain.Financial Independence Ambassador Award: Also given at the Wiki Finance Expo in November 2023 for advocating financial independence via blockchain technology.Cryptocurrency Entrepreneur of the Year: Recognized at the October 2023 Blockchain Eco Conference in Dubai.
Experience
Founder of TRON: In 2017, the TRON Foundation was founded, and the TRX token was introduced through an initial coin offering (ICO) that brought in over $70 million.CEO of Rainberry (previously BitTorrent Inc.): Oversaw the creation of the BTT cryptocurrency token when purchasing BitTorrent for $140 million in 2018.Principal Agent at Ripple Labs: worked from 2014 to 2016, learning about cross-border payments and blockchain technology.Founder of Peiwo: Before working on blockchain, he launched a well-known voice-based social networking service in China.Diplomatic Role: From 2021 until 2023, I served as Grenada’s Permanent Representative to the World Trade Organization (WTO), campaigning for cryptocurrency and technological progress.Acknowledgment: Named a Davos Global Shaper in 2014 and included in Forbes’ 30 Under 30 Asia list.
FAQs
Who is Justin sun?Chinese entrepreneur Justin Sun founded TRON and is well-known for his acquisitions of BitTorrent and Poloniex as well as his significant influence in the blockchain space.Justin sun Net worth?As of early 2024, Justin Sun’s net worth is projected to be at least $1.4 billion, however, some sources put it as high as $1.5 billion. EntrepreneurInvestorCrypto and Blockchain ExpertChief Executive Officer expressed respect for President Milei but believes he should take responsibility for the LIBRA token issue. He urged those behind it to return the stolen funds and face legal consequences, emphasizing the importance of protecting investors.

Another X user was not shocked but rather called it a planned strategy from influential figures

Who’s Backing LIBRA?

LIBRA is connected to KIP Network Inc., the company behind the KIP Protocol, a Web3 project backed by Animoca Ventures. KIP Network has been involved in Argentina’s crypto space and even worked with the Buenos Aires government. However, their role in the LIBRA sell-off is unclear, leaving many investors feeling uneasy.

Coinbase’s head of product, Conor Grogan, commented on the situation. He said that major token launches like this are usually planned long before they go public. His comment suggests that LIBRA may have been designed to grab quick cash from the start.

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Another Political Crypto Failure?

LIBRA’s collapse looks a lot like what happened with the Central African Republic’s CAR token. That project also had big promises, briefly hitting a $1 billion market cap, only to crash below $20 million. Both cases show that just because a crypto token is linked to a government doesn’t mean it’s safe to invest in.