Argentine President Javier Milei endorsed the LIBRA memecoin, leading to $251 million in trader losses, while insiders allegedly gained $180 million.
Argentine President Javier Milei is facing intense scrutiny after his endorsement of the Solana-based meme coin LIBRA, which has resulted in widespread financial losses for traders.
| Key Takeaways: – Argentine President Javier Milei endorsed the LIBRA memecoin, leading to $251 million in trader losses, while insiders allegedly gained $180 million. – Analysis suggests a small group of early traders profited before retail investors. |
According to blockchain research firm Nansen, 86% of investors who took positions in LIBRA lost money, with total losses estimated at $251 million. Meanwhile, a small group of insiders reportedly secured $180 million in profits.
The controversy erupted late Friday when President Javier Milei promoted the LIBRA token on social media, directing users to a website claiming the token would support struggling businesses in Argentina.
The post triggered a surge in trading activity, with automated trading bots, known as “snipers,” quickly absorbing liquidity. The token’s market capitalization briefly soared to $4.5 billion before crashing, leaving thousands of retail investors with significant losses.
Nansen’s analysis of 15,000 wallets, led by researcher Nicolai Sondergaard, suggests that a select group of traders had early access to the token, allowing them to offload holdings before the broader public could react. The timing and scale of the sell-off have fueled accusations of insider manipulation, making this Milei’s most significant political scandal since taking office over a year ago.
Hayden Davis, CEO of Kelsier Ventures, which was involved in launching the LIBRA token, initially described the token as a means to aid Argentina’s economy. However, he later dismissed it as merely a meme coin, contradicting its earlier framing. Davis and Kelsier Ventures were among the biggest beneficiaries of the token’s short-lived success, reportedly netting around $100 million.
Despite claims that he did not directly own LIBRA tokens, Davis admitted in a recent interview that he profited from the launch and was now exploring ways to address the fallout.
Additionally, reports have surfaced linking Karina Milei, the president’s General Secretary, to Mauricio Novelli, a local crypto consultant who allegedly introduced Milei to key figures behind LIBRA. While Davis denied making payments to the Mileis, he acknowledged his involvement and the controversy surrounding the token’s promotion continues to intensify.
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