$LIBRA Token Crash: What Happened?
The collapse of the $LIBRA token has triggered political and financial turmoil in Argentina. Promoted by President Javier Milei, the token’s rapid rise and sudden crash resulted in massive investor losses and widespread controversy.
Timeline of the Collapse
📅 February 14, 2025 – President Milei endorses $LIBRA on social media, causing a sharp price surge.
📉 Hours Later – The token plummets in value, wiping out investments for 40,000+ traders.
⚠️ Allegations – Accusations of a “rug pull” emerge, suggesting token creators artificially inflated prices before cashing out.
Political Fallout: Milei Under Fire
The scandal has led to over 110 legal complaints against President Milei, with accusations of fraud and calls for impeachment.
🔹 Former President Cristina Kirchner labeled Milei a “crypto fraudster.”
🔹 Milei denies involvement, claiming he had no financial ties to $LIBRA.
🔹 Federal Judge María Servini has launched an official investigation.
Adding to the controversy, Hayden Mark Davis, co-creator of $LIBRA, alleges that he influenced Milei through payments to his sister, Karina Milei, a key government figure.
Financial & Market Impact
The $LIBRA collapse has had ripple effects across financial markets:
📉 Buenos Aires Stock Index fell 5.6% amid investor panic.
💱 Crypto Market Volatility surged, affecting investor confidence.
🔻 Solana (SOL), which hosted $LIBRA, dropped 8.8% following the scandal.
Regulatory Implications & The Future of Crypto in Argentina
🚨 Key Takeaways:
🔹 The $LIBRA fallout highlights the risks of unregulated crypto endorsements by political figures.
🔹 Stricter regulations may follow as investigations progress.
🔹 Investors should exercise caution with political or influencer-backed tokens.
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