The launch of the Libra (LIBRA) cryptocurrency, endorsed by Argentine President Javier Milei, turned into a financial disaster after insiders cashed out more than $107 million. The token, initially launched to boost the Argentine economy, saw a massive surge in its value, reaching a peak market capitalization of $4.56 billion on February 14, 2025. However, the excitement was short-lived as within just 11 hours, the token’s value plummeted by over 94%, wiping out billions from the market cap. This dramatic fall was attributed to insider wallets, which siphoned liquidity from the token, extracting millions of dollars from the market.
According to onchain intelligence firm Lookonchain, at least eight wallets linked to the Libra team were involved in cashing out a total of $107 million.
These wallets obtained $57.6 million in USDC and over 249,000 Solana, worth nearly $50 million. The sell-off occurred shortly after the token’s debut on decentralized exchanges, causing massive losses for investors who had bought into the hype surrounding the project. As the value of Libra collapsed, its market capitalization dropped to just $257 million, prompting widespread panic and distrust among investors.
The collapse of Libra follows a pattern seen in other celebrity-backed memecoins, with speculative trading driving inflated prices before crashing. Retail investor interest in these types of tokens has grown since the launch of US President Donald Trump’s TRUMP token and First Lady Melania Trump’s MELANIA token. Despite their appeal, these tokens often lack the fundamental utility and transparency that investors need to feel secure. In the case of Libra, blockchain data firms had already flagged concerns about the project’s flawed tokenomics, including the fact that 82% of the token’s supply was unlocked and sellable from the start.
After the collapse, President Milei deleted his earlier endorsement of Libra and blamed political opponents for trying to exploit the situation. While the controversy surrounding the failed token continues to unfold, it highlights the risks associated with celebrity-endorsed cryptocurrencies. The incident has led to renewed calls for caution when investing in speculative assets like memecoins, as the market for these types of tokens remains volatile and prone to manipulation.
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