Token Soars, Then Plummets
A newly launched token, $LIBRA, briefly surged to a $4.5 billion market cap after gaining the endorsement of pro-crypto Argentinian President Javier Milei. Promoted as a project aimed at supporting small businesses, the token saw massive interest before insiders reportedly cashed out $107 million. This triggered a sharp 95% decline in value, leading to accusations of a rug pull.
Milei Denies Involvement
Following the collapse, Milei deleted his promotional post and cut ties with the project.
“To the filthy rats of the political caste who want to take advantage of this situation to do harm, I want to say that every day they confirm how vile politicians are.”
he wrote in response to critics.
Wallet Data Raises Questions
Blockchain analytics revealed that a small number of wallets controlled the majority of the $LIBRA supply. Observers suggested that these wallets were linked to insiders who exited the market before the price crash.
KIP Protocol Responds
Julian Peh, co-founder of KIP Protocol, a Web3 firm associated with the project, pushed back against rug pull claims.
“The whole internet is saying it’s a rug.”
Peh stated, insisting that the token’s collapse was not planned. He further emphasized that KIP did not profit from the sell-off and remained committed to the project’s original mission.
Market Fallout
Despite the controversy, $LIBRA still holds a market cap of $232 million, significantly down from its peak. The incident has fueled skepticism about political endorsements in crypto and the risks of centralized token ownership.
Disclaimer: This content does not constitute trading or investment recommendations. It’s essential to conduct your own research before purchasing any cryptocurrency or investing in any services.
