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The cryptocurrency market witnessed yet another dramatic crash as LIBRA, a viral memecoin, plummeted by over 80%, wiping out nearly $4 billion in market value. The sudden downturn came after Argentina’s President Javier Milei publicly distanced himself from the project, calling it a “scam” and denying any association with its promotion.
What Led to LIBRA’s Crash?
LIBRA, inspired by Argentina’s libertarian movement and President Milei’s pro-Bitcoin stance, gained massive traction among crypto traders and retail investors. Rumors and social media hype suggested that Milei backed the token, fueling an explosive rally over the past few weeks.
However, in a shocking statement, the Argentine President took to social media to deny any connection to LIBRA, warning investors against falling for fraudulent schemes that exploit his name for financial gain.
Milei’s statement:
“I have never endorsed or supported any cryptocurrency named LIBRA. This is a scam, and I urge people to be cautious with their investments.”
Following his remarks, panic-selling ensued, leading to a massive price collapse within hours.
LIBRA’s Hype and Sudden Fall
LIBRA launched as a meme-driven token, capitalizing on Argentina’s rising crypto adoption and the President’s reputation as a pro-crypto leader. However, analysts had warned that lack of real utility and over-reliance on hype made it vulnerable to a crash.
🔹 ATH (All-Time High): LIBRA surged over 500% within days, reaching a peak market cap of $5 billion.
🔹 The Crash: After Milei’s statement, LIBRA nosedived 80%, erasing over $4 billion in value.
🔹 Investor Panic: Many traders liquidated their holdings, leading to further instability.
Lessons from the LIBRA Collapse
This incident serves as a harsh reminder of the risks associated with investing in speculative meme coins:
Celebrity or political endorsements should always be verified.
Hype-driven tokens without real-world utility are highly volatile.
Due diligence is crucial—always research before investing.
While some traders are hoping for a recovery, most experts believe LIBRA’s credibility is permanently damaged. With growing regulatory scrutiny on meme coins and fraudulent promotions, LIBRA’s fate remains uncertain.
