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

LIBRA Token Crashes 85 After Mileis PromotionE28094Insiders Cash Out Millions.webp.webp

The post LIBRA Token Crashes 85% After Milei’s Promotion—Insiders Cash Out Millions appeared first on Coinpedia Fintech News

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 On-chain expert EmberCN found that certain wallets had withdrawn funds from exchanges before Milei’s post, bought LIBRA right after the promotion, and then sold once the price spiked.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



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.

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