18.02.2025 18:20
Argentinian President Javier Milei is under fire for supporting a cryptocurrency called LIBRA, which quickly rose and then plummeted, causing losses for many investors. So, what is the LIBRA token? Here’s what has happened in the last 24 hours...
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What is LIBRA?
LIBRA is a token launched by entrepreneur Hayden Davis. Davis is also the CEO of the crypto investment company Kelsier Ventures. According to Bloomberg, the KIP Protocol, which develops Web3-based decentralized artificial intelligence projects, was also involved in the launch of LIBRA.
However, KIP stated that it became involved in the project after LIBRA was launched and only took on the task of selecting funded technology projects and providing technical infrastructure for artificial intelligence ventures.
LIBRA operates on the Solana blockchain platform, known for its high transaction speed and low transaction fees. This platform is particularly popular among memecoin investors.
The token could be purchased through a link directing users to a site called "vivalalibertadproject.com." This phrase is a slogan frequently used by Milei in his speeches and social media posts, and it is also quite similar to the name of Milei's political party, "La Libertad Avanza."
President Milei and the Connection to LIBRA
On the evening of February 14, Friday, Milei shared on his social media account that LIBRA would revitalize the Argentine economy and support the growth of small businesses. By providing a link to the token's website, he stated, "It will promote the growth of the Argentine economy and support small companies and ventures."
According to CNN, the LIBRA token was created just minutes before Milei's post, and the domain name of the website mentioned in the post was registered on the same day.
When the token first launched, it had almost zero value and was mostly held in a few digital wallets. However, with Milei's support, the token's price skyrocketed to nearly $5, and its market value exceeded $4 billion.
However, shortly after, a note appeared in Milei's post warning users to be cautious. The note indicated that the token resembled a fraud method known as "rug pull." In this method, developers launch a token, attract investors, and then disappear with all the money.
Several hours later, Milei deleted his original post and stated that he had no connection to the LIBRA token. "I didn't know the details of the project, and after learning, I decided to stop the post," he said.
The token's value dropped to just a few cents within three hours. In five hours, $4.4 billion was wiped off its market value.
According to global capital markets research firm The Kobeissi Letter, $87.4 million was withdrawn within the first three hours after the token was launched, and 82% of the token was held in a single wallet. Additionally, no public information had been provided about the distribution of the token.
The founder of the token, Hayden Davis, admitted that despite the loss in value, he retained some of his earnings.
On the same day, a statement from Milei's office announced that an official investigation had been launched regarding the matter and that the Anti-Corruption Office had been activated to determine whether any member of the government, including the President, had committed irregularities.
Meanwhile, opposition parties in Argentina, particularly the "Union for the Homeland" coalition, harshly criticized Milei and announced that they would initiate an impeachment process.
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