Milei’s $4.4B Memecoin Endorsement Leads to Crash

Argentina’s President Javier Milei faces backlash after his endorsement of the Libra memecoin led to a dramatic market surge and crash. The token reached a $4.4 billion market cap before plummeting 95%.

The Rise and Fall of Libra

Milei’s initial endorsement came through a tweet promoting Libra as a private project for Argentina’s economic growth. The tweet included a Solana contract address. The market responded swiftly. Libra’s value shot up by 2,000% in just 40 minutes.

The euphoria didn’t last long. Early holders began a massive sell-off. Trading data reveals concerning patterns. The token saw 74,500 buy orders against 28,900 sell orders. Large sell orders overwhelmed retail buying pressure.

Inside the Dump

Blockchain analysis exposed suspicious activity. Insiders reportedly created one-sided liquidity pools on Metora. This allowed them to extract approximately $87 million in SOL and stablecoins. The scheme left retail investors holding worthless tokens.

Market Impact

The Libra incident triggered a broader memecoin market decline. TRUMP token lost $500 million in market cap within 30 minutes. This highlights the volatile nature of memecoin investments.

Presidential Damage Control

Milei quickly distanced himself from the project. He deleted his promotional tweet and claimed ignorance about the project’s details. This incident raises questions about the responsibility of public figures in crypto endorsements.

Lessons for Investors

This event offers crucial lessons. First, celebrity endorsements don’t guarantee investment safety. Second, rapid price increases often signal potential manipulation. Third, proper due diligence remains essential in crypto investments.

The Libra incident serves as a reminder of memecoin market risks. Investors should approach such investments with extreme caution. Quick profits often come with hidden dangers.

Tags: #Memecoin #JavierMilei #CryptoScam #SolanaToken #Argentina

Source: CoinDesk