Argentina's President Javier Milei became embroiled in a crypto scandal after promoting a new memecoin, Libra. Following his endorsement, the token's price soared then crashed.
What Happened to the Libra Token?
After Javier Milei mentioned Libra in his post, the token's price skyrocketed over 2000% in 40 minutes, with a market cap of $4.4 billion. However, this excitement was short-lived as the token plummeted over 95%. Early investors quickly sold their tokens, causing the massive drop. Insider manipulation was evident, as despite a trading volume of $1.1 billion, the discrepancy between 74,500 buy and only 28,900 sell orders indicated foul play.
Javier Milei's Response
Following the crash, Javier Milei deleted his tweet and claimed he had no real connection with the Libra project. He insisted he knew little about the token at the time of its promotion. Once aware of the situation, he stopped discussing it and removed the tweet. However, the damage was already done.
Influence of Celebrities on Crypto Market
Often, tweets from politicians or celebrities can influence a digital asset's price. For example, Elon Musk's tweets have repeatedly impacted Dogecoin's value. However, investors have suffered losses when hype dissipated and prices dropped. Similarly, the TRUMP memecoin lost value after interest waned. Milei's episode with Libra underscores the potential volatility of the crypto market.
The Libra token incident highlights the inherent risks in the cryptocurrency world. Until stronger regulations are enacted, the influence of politicians and celebrities on the market will likely continue.
