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If you blinked, you missed it. The LIBRA coin just went from a $4.5 billion rocket ship to a meme-worthy crash that left traders clutching their ledgers. It all started when Argentina’s President Javier Milei’s X account (formerly known as Twitter, because we still can’t get used to it) hyped up a Solana-based meme coin called LIBRA. The crypto degens did what they do best, FOMOed in at lightspeed.
The result? LIBRA pumped to $4.50, giving it an absurd market cap. But, like an overcooked empanada, it didn’t hold up for long. As doubts swirled around whether this was a legit token or just a well-orchestrated rug pull, the price nosedived 89%, settling at a sad $0.50.
The Great Argentine Crypto Experiment? Or Just Another Pump & Dump?
According to the official website of the Viva La Libertad Project, the goal of LIBRA coin is to “stimulate Argentina’s economy” by funding small businesses and local startups. Sounds noble, right?
“This private project is dedicated to boosting the Argentine economy by funding small businesses,” read a translated message from Milei’s official account. “The world wants to invest in Argentina.”
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Translation for the crypto world: It’s either a game-changing initiative or just another excuse to drain liquidity from overhyped speculators.
Déjà Vu: Trump’s TRUMP Token All Over Again?
If this all sounds weirdly familiar, that’s because we saw something eerily similar with Donald Trump’s TRUMP coin earlier this year. Trump’s token turned out to be legit (and still trades actively), but the LIBRA coin situation is murkier than a Buenos Aires street vendor’s tax records.
Even Bloomberg Línea confirmed that Milei acknowledged the token’s launch, but clarified it’s not HIS token.
The Blockchain Detectives Smell Something Fishy
While traders panic-sold their bags, on-chain analysts started pulling out their magnifying glasses. The blockchain forensic squad at Chainalysis flagged a few major red flags:
- The initial LIBRA funding came from an instant swap service, not a traditional VC or team wallet.
- A single wallet controls a massive portion of the supply, which is never a good sign.
- The devs didn’t use multi-signature security, which is the standard for serious projects.
Meanwhile, Bubblemaps, a blockchain visualization firm, took things a step further, claiming the devs cashed out $87M in liquidity.
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“They already pulled $87 million by removing USDC and SOL from liquidity pools,” the firm posted on X. “LIBRA tanked 85% because the devs absorbed $87M of buy pressure. And there’s still $500M left to drain.”
The Aftermath: What’s Next for LIBRA Coin?
For now, LIBRA coin has officially entered the meme graveyard, alongside all the other pump-and-dump victims. Could it make a comeback? Maybe. The crypto market has the memory of a goldfish. But for now, the takeaway is clear:
Never trust a meme coin, especially when it’s shilled by a politician.
Update (16th of February 2025)
Political Fallout: Milei Faces Impeachment Threats Over LIBRA Coin
As if LIBRA’s 89% crash wasn’t bad enough, the scandal has now spilled into Argentina’s political arena. Opposition lawmakers are calling for President Milei’s impeachment, arguing that his promotion of the token has damaged the country’s reputation on an international scale.
Lawmaker Leandro Santoro, a member of the opposition coalition, didn’t mince words:
“This scandal, which embarrasses us on an international scale, requires us to launch an impeachment request against the president.”
Adding fuel to the fire, Argentina’s fintech chamber has publicly acknowledged that the LIBRA coin situation could very well be a classic rug pull. Their statement suggests that the developers may have manipulated the token’s value, only to dump their holdings for massive profits.
With political pressure mounting and financial watchdogs scrutinizing the fiasco, the LIBRA saga is far from over.
Update (19th of February 2025)
$100M Plan Gone Wrong, Hayden Davis Breaks Silence
Just when you thought the LIBRA coin drama was done – plot twist.
Hayden Davis, a 28-year-old who’s now the unexpected face of the LIBRA coin saga, has stepped into the spotlight. Over the weekend, Davis spilled some serious tea to Dave Portnoy, the Barstool Sports founder and certified meme coin hype man. Davis claimed that extracting $100 million from LIBRA’s launch was a “necessary evil” to ensure the meme coin’s longevity.
Necessary evil or just evil? The jury’s still out.
The $100M “Longevity Plan” That Backfired
Davis confessed that LIBRA was deliberately “sniped” by its developers, allegedly to prevent opportunistic traders from tanking the price. But instead of running off with bags of SOL and USDC, Davis said the funds were supposed to be reinvested into LIBRA.
“I was instructed, ‘Hey, don’t inject anything back in until Milei’s second video,’” Davis explained.
Spoiler alert: That second video never came.
When pressed on who actually owns the funds, Davis got a bit squirmy:
“The digital assets most likely belong… to Argentina?”
Classic meme coin energy: vague claims, big numbers, and lots of confusion.
Bubblemaps: The Blockchain Detectives Return
Bubblemaps, the same on-chain analytics firm that previously flagged suspicious activity, identified five digital wallets holding $87 million worth of Solana and USDC. According to their findings:
- Three wallets still hold $82.9 million in digital assets.
- Two wallets, each containing roughly $880k in USDC, were completely emptied.
- One wallet allegedly “sniped” LIBRA for a $6 million profit, flipping the token almost immediately after launch.
Bubblemaps said these funds came from developers removing liquidity. Yep, the exact mechanism that allows LIBRA to trade.
The Vanishing Act: Milei’s Missing Second Post
Davis told Portnoy that when it became obvious that Milei’s second LIBRA video wasn’t coming, his team debated injecting the $100M back into the token. But after much hand-wringing, they decided to hold off, all according to mysterious instructions.
“It’s not a rug,” Davis insisted in an interview with Coffeezilla, the YouTube sleuth known for exposing crypto scams. “It’s a plan gone miserably wrong with $100 million sitting in the account that I’m a custodian of.”
From Meme Coin to Political Thriller
Davis now claims he fears for his life, saying he’s become the focal point of a multi-billion-dollar political drama. With opposition lawmakers pushing for President Milei’s impeachment, LIBRA coin’s crash has morphed from a crypto controversy into an international scandal.
So what’s next? With $100 million in limbo, political tension rising, and Davis claiming to be the “reluctant custodian” of the funds, LIBRA coin’s story isn’t over.
Stay tuned. The LIBRA soap opera continues – rug or not.
