Experts Call It a "Classic Coin Pump-and-Dump Scheme"
Argentinian President Javier Milei's promotion of the 'Libra (LIBRA)' meme coin, described on his social media as a private project for Argentina's economic growth, sparked controversy after it plummeted 94% within just a few hours.
On the 16th, Yonhap News reported this citing daily newspapers Clar?n, La Naci?n, and ?mbito. Following President Milei's promotional post, a large influx of investors caused the Libra coin price to surge sharply before rapidly crashing.
Experts have labeled this a typical "rug pull" scam. A rug pull refers to a fraud where project operators gather investors' funds, then abscond with all the money.
In political circles, calls for a presidential investigation and impeachment motions are being discussed. Earlier, on the 14th at 7 p.m., President Milei posted on his X (formerly Twitter), “Liberal Argentina grows!!! This private project is dedicated to encouraging Argentina’s economic growth and supporting funding for Argentina’s small and medium enterprises and startups.” He also promoted the meme coin Libra by posting related links, stating, “The whole world wants to invest in Argentina.”
Thanks to President Milei’s promotion, a large number of investors poured in. The Libra meme coin price soared to as high as $4.978 (7,175 KRW). However, within just a few hours, it plunged to a low of $0.19 (274 KRW), marking a 94% drop from its peak.
Subsequently, experts analyzed Libra’s fund flows. They concluded that massive sell-offs from a small number of accounts were cashed out and siphoned off, leading to the sharp price collapse.
Supporters of Milei even questioned whether the president’s account had been hacked, but President Milei deleted the original promotional post and posted a second message to clarify.
President Milei stated, “This incident has nothing to do with me,” and explained, “I deleted the original promotional post because I posted it without knowing the details of the project.” He also warned, “I will not tolerate opposition forces blaming me over this matter.”
However, the minor opposition party Civic Coalition demands that the government come to the National Assembly to explain the incident, and the Socialist Party has even mentioned filing an impeachment motion against the president. The largest opposition party, the Peronist Party, has seen individual opinions from its lawmakers appear on social media, but no official party statement has been made yet.
Meanwhile, fake meme coins named after U.S. President Donald Trump and First Lady Melania Trump are rampant, with prices wildly fluctuating. A virtual asset named after Trump’s eldest daughter Ivanka has also appeared. Ivanka has warned investors not to buy, calling it a fraudulent meme coin.
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