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Argentina’s President Cuts Ties with LIBRA Meme Coin as Insiders Take $107 Million
Argentina’s President Javier Milei has distanced himself from the embattled LIBRA meme coin following allegations of a pump-and-dump scheme. The drastic move comes after reports emerged that insiders had withdrawn a staggering $107 million prior to the token’s market value plummeting.
Milei initially endorsed LIBRA in a now-deleted X post, which led to an unprecedented surge in trading activity and pushed the project’s market capitalization to a staggering $4.5 billion. However, the sudden collapse of the meme coin has sparked widespread scrutiny, with many accusing the project’s founders of orchestrating a massive pump-and-dump scheme.
The controversy surrounds LIBRA’s rapid rise to prominence following Milei’s endorsement on February 14. While the president claims he initially shared the project as a private initiative, he later deleted his post after reviewing the details and decided to cut ties with the meme coin.
In the aftermath of this incident, the cryptocurrency community has been left reeling, raising concerns about investor protection and regulatory oversight in crypto markets. The LIBRA debacle has sparked heated debates over the role of government officials in promoting cryptocurrencies and their potential impact on market volatility.
Industry voices have weighed in on the situation, with Andre Cronje, co-founder of Sonic Labs, commenting that meme coin traders are a demographic that doesn’t care about decentralized finance or blockchains. He further stated that these participants aren’t involved in any other significant projects, implying that they’re not contributing to the overall cryptocurrency ecosystem.
Meanwhile, SlowMist founder Yu Xian has called for accountability and punishment by law, stating that those responsible should face legal consequences. This development underscores the pressing need for regulatory oversight in the crypto market to prevent such pump-and-dump schemes from happening again.
In light of this controversy, CoinChapter.com will continue to monitor the situation closely and provide our readers with updates on any further developments surrounding LIBRA and its involvement with government officials.
For more information, please visit our previous article here [link].
Source: coinchapter.com
