$LIBRA Token: Milei’s Withdrawal, Whale Activities, and the 89% Price Crash

• Javier Milei President of Argentina distanced himself from the $LIBRA token claiming that he didn’t properly vet the project
• $LIBRA coin rose to a $4.5 billion market cap but fell by 89% within minutes
• On-chain analysts expose LIBRA’s red flags and whale activities 

Argentina President Javier Milei introduced the $LIBRA token, which sparked significant market interest. Later on, he separated himself from the project, claiming that he didn’t have complete understanding. 

Within hours of this announcement, the token experienced a dramatic collapse, wiping out $4.4 billion in market value.

LIBRA Drops 89% as Traders Doubt Its Legitimacy

Late Friday, President Javier Milei’s X account promoted the $LIBRA token, a Solana-based meme coin. He stated that the token aimed to boost economic growth by providing capital for small enterprises. The Viva La Libertad Project also described the $LIBRA token as a financial tool to support startups and local businesses in Argentina. 

After Milei’s post, $ LIBRA’s value surged to about $6 billion, making it as valuable as one of Argentina’s major banks. At one point, the token was trading at $4.50 but due to low liquidity, its price collapsed to $0.99159 within hours. 

This sudden drop caused shockwaves across both the crypto industry and Argentina’s political scene. 

Amid the crash, Milei confirmed to Bloomberg that he did share the LIBRA token launch, but it is not his project. He claimed that he had not thoroughly vetted the project before endorsing it. And he retracted his support and unfollowed the token’s official account.

Whale Activities Amid $LIBRA Token Turmoil

An analysis released by chainanalysis identified key issues about the token launch some of which are the token’s initial funding in SOL through an instant swap service and a large amount of the supply being controlled by one wallet.

Chainalysis also discovered that the wallet used to create the token and the one holding the highest amount of supply are both managed by single private keys. This is unusual since most new tokens use multi-signature security for added protection.

While this was going on, another report came in from Data Nerd that a whale identified as 62KQa sold 659,000 $LIBRA tokens for $392,000, despite buying it for $2.5 million. 

This resulted in a loss of about $2.1 million, with an ROI of -84.32%. This major sell-off signals a significant setback for $LIBRA, potentially affecting trader confidence and overall market liquidity.

Other reports showed that the $LIBRA team withdrew $107 million from liquidity pools, 57.6M $USDC and 249,671 $SOL($49.7M). 

What’s Next for LIBRA?

Currently, the $LIBRA coin is trading at $0.2511, down nearly 95% from its peak. Many traders are now wondering about the price of this asset and whether it can recover or continue to decline.

Investors are on the watch for further updates. Some believe the token price may stabilize, while others fear it could be a pump-and-dump scheme. As always, traders should do thorough research before investing.

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