How Milei Reignited the LIBRA Hype and What Followed

Argentine President Javier Milei has reignited the LIBRA token controversy by reposting a tutorial on purchasing the LIBRA token on the social platform X (formerly Twitter). 

This comes after he previously retracted his promotion of the token following insiders cashing out over $100 million.

President Milei Reposts LIBRA Purchase Tutorial

Earlier, Milei claimed he was unaware of the project’s details and deleted his initial post after learning more. Despite his prior withdrawal, Milei reposted a tutorial from an X user.

The tutorial outlined five steps to purchase the LIBRA token. Moreover, it mentioned that the process would take about 2 hours. 

However, the original creator of the tweet added a clarification, which was again reposted by Milei. He emphasized that the post’s sole purpose was to highlight the difficulty for an average person to buy into this meme coin, not to endorse or recommend it.

“I just wanted to clarify that the small investor, with less knowledge, is left out of this,” the post clarified.

Nevertheless, after Milei’s repost, the LIBRA token experienced a dramatic 60% price surge. Yet, the gains were temporary and LIBRA dipped shortly after. At press time, it traded at $0.35.

The brief uptick, however, triggered a new wave of price manipulation. One X user pointed out that the same individual who profited from the initial pump and dump of LIBRA was at it again. He netted a quick profit of $496,837 in just 47 minutes.

Data from Lookonchain further revealed that the wallet was “goofyahh.sol,” who spent $5 million in USDC to buy 10.4 million LIBRA tokens. The wallet had an unrealized profit of $2.8 million. 

Shortly after, the same wallet sold off its holdings, making around $497,000 in profit. This individual had previously made $1.65 million from LIBRA as well, demonstrating the rapid gains from such speculative moves in the market.

Milei and David Address Accusations

Meanwhile, the controversy surrounding the LIBRA token has intensified scrutiny on Milei and others involved. Argentina’s Anti-Corruption Office (OA) has launched an investigation into the matter.

Additionally, over 100 criminal complaints have been filed against Milei and associated parties. Opposition lawmakers are even pushing for impeachment.

Moreover, US prosecutors are reportedly considering charges due to the involvement of American Hayden Davis. Davis is the CEO of Kelsier Ventures, which has been identified as the main entity behind the LIBRA meme coin.

Nonetheless, both Davis and Milei continue to defend their actions despite mounting criticism. Davis addressed the token’s crash in an interview. He stated that labeling the LIBRA token as a rug pull is objectively inaccurate. 

He emphasized that there is still significant liquidity locked in the bonding curve, with approximately $60 million secured. This, he said, supports a market cap of $300 million.

“It’s not a rug. It’s a plan gone miserably wrong with $100 million sitting in an account that I’m the custodian of,” Davis remarked.

Milei also continues to deny any wrongdoing. In a recent interview, he claimed he merely shared information he believed could benefit Argentine entrepreneurs. 

“I didn’t promote it, I disseminated it,” he said. 

However, his defense has drawn further backlash.

“If heads don’t roll for a President promoting a >$100 million pump & dump, then get ready because the real crime season will just be getting started,” wrote crypto analyst Alex Krüger on X.

As investigations and legal actions progress, the LIBRA token scandal remains a significant political and financial flashpoint in Argentina.