LIBRA Token Sparks Scam Suspicions After Being Promoted by Argentine President
Key Points:
- Argentine President Javier Milei promoted the LIBRA token but later deleted his post, clarifying he had no official ties to the project.
- Analysts discovered suspicious transactions, including a trader making $8.7 million in an hour and over $20 million linked to insider activity.
- LIBRA token’s value plunged 80% to $0.17 amid revelations that 82% of its supply was controlled by a cluster of wallets, raising fears of manipulation.
Argentine President Javier Milei sparked controversy after initially promoting the LIBRA token on X, only to later delete his post and distance himself from the project.
Read more: Argentina Approves Crypto ETFs For Local Stock Market Use
Milei’s LIBRA Token Endorsement Sparks Controversy
The LIBRA token, introduced as part of the “Viva La Libertad Project,” was said to support Argentina’s economy by financing local businesses and startups. However, scepticism quickly arose regarding its legitimacy.
According to blockchain analysts, transactions linked to LIBRA tokens exhibited signs of insider trading. A user reportedly spent $900,000 to buy the token at an average price of $0.26945 before selling it at $2.9139, securing an $8.7 million profit within an hour.
Insider Trading and Manipulation Allegations Emerge
Investigators also noted that at least three wallets followed a pattern of withdrawing funds from centralized exchanges before the announcement, buying LIBRA at launch, and cashing out after the price surge, collectively making over $20 million.
Further scrutiny by Bubblemaps revealed that 82% of the token supply was held by a cluster of interconnected wallets. Additionally, the team behind LIBRA allegedly liquidated around $87.4 million worth of USDC and SOL, fueling concerns about centralization and potential manipulation.
The token’s value has since plummeted by 80%, currently trading at $0.17 with a 24-hour volume of $1.3 billion.
Following mounting criticism, Milei stated he had no official ties to the project and accused political opponents of using the incident to attack his administration. The project’s website clarified that LIBRA was a private initiative led by KIP Network, a Web3 platform backed by Animoca Ventures.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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