Milei’s LIBRA Token Faces Pump-and-Dump Allegations

• The LIBRA token soared in value but quickly fell, causing losses for many investors.  
• Insider wallets made millions before the crash, raising concerns about manipulation.  
• Milei removed his support after learning, making investors question the token’s purpose.

Argentina President Javier Milei announced the launch of the LIBRA meme token on February 14, 2025, claiming it would boost the economy. The token’s value surged to $4.96, briefly exceeding a $5 billion market cap. However, LIBRA’s price plummeted within hours to $0.60, with its market worth dropping below $1 billion. Blockchain data revealed that insider wallets profited massively before the crash, leading to suspicions of market manipulation. Milei later deleted his endorsement, claiming a lack of due diligence.   

LIBRA’s Rapid Rise and Sudden Collapse 

LIBRA’s launch sent its value soaring, reaching an FDV of $4.5 billion in hours. The token was initially marketed as a project aimed at supporting Argentina’s small businesses. However, 82% of its total supply was unlocked across multiple addresses, raising concerns over its centralization and potential manipulation.  

As the token gained traction, blockchain analysis from Lookonchain showed that insider wallets linked to the project team made a $43.8 million profit. These 11 wallets, created just before the token’s launch, had pre-funded assets to acquire LIBRA at an early stage. Shortly after, eight wallets associated with the LIBRA team liquidated $107 million in USDC and SOL, further fueling concerns about a possible coordinated sell-off.  

Blockchain firm Bubblemaps later confirmed that the project team removed $87 million in liquidity, leading to the token’s 85% price drop. Investors who entered at the $1.60 price suffered an average loss of 56%.  

Milei Deletes Endorsement Amid Insider Profit Concerns

President Milei initially positioned LIBRA as part of Argentina’s economic transformation. His direct involvement added credibility, prompting a flood of investments. However, after LIBRA’s rapid decline and revelations of insider activity, Milei swiftly distanced himself from the project. 

The president deleted his social media posts and admitted he had not thoroughly researched the initiative before promoting it. His retraction deepened market uncertainty and further eroded investor confidence. Meanwhile, reports emerged that the LIBRA project team had disbanded, reinforcing speculation that the token was part of a larger scheme.   

Related: Coinbase Expands in Argentina with New Crypto Services  

Pump-and-Dump Allegations and Investor Fallout 

Despite being linked to KIP Network Inc. and its Web3 framework, LIBRA’s abrupt downfall suggests a potential pump-and-dump scheme. The project’s website mentioned KIP’s involvement, but its backers, including Animoca Ventures, have not addressed the controversy.

LIBRA’s volatility highlights the risks associated with meme tokens and political endorsements in crypto. With 85% of the token’s liquidity removed, investors are left with heavy losses. The incident raises a critical question—was LIBRA ever intended to be a legitimate economic initiative, or was it a well-orchestrated insider scheme?

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