A tweet by Argentina’s President Javier Milei caused a rapid surge of $LIBRA's value to $4 billion, which soon collapsed amid allegations of manipulations.
Rise and Fall of $LIBRA
On February 14, 2025, Argentina’s President Javier Milei announced a government-linked token, $LIBRA, triggering a rise in its market value to $4 billion. Within hours, the token’s price collapsed due to allegations of coordinated market manipulation, revealing ties between political figures and crypto ventures.
Role of Kelsier Ventures and Meteora
Public records confirm Hayden Davis, CEO of Kelsier Ventures, advised Milei’s administration on the token’s launch. Meanwhile, Meteora faced scrutiny over its involvement in liquidity pool configurations, raising concerns about conflicts of interest.
Consequences and Reactions
Following the scandal, Solana's token SOL fell 12%, and meme tokens linked to the projects declined by more than 40%. Regulators in the U.S. and Argentina initiated investigations focusing on compliance gaps in memecoin launches, putting investment confidence in jeopardy and calling for a reassessment of public officials' disclosure rules.
The $LIBRA scandal underscores the importance of balancing innovation with accountability as political figures gain influence in the crypto industry. The episode raises ongoing concerns about the safety and regulation of digital assets amid the threats of market manipulation by influential individuals.
