Argentina’s President, Javier Milei, has found himself involved in a crypto controversy after he promoted a new memecoin called Libra. In a recent, now-deleted X post, Milei talked about Libra, calling it a private project that would help Argentina’s economy. He also shared a link to the token. Right after his tweet, Libra’s value skyrocketed by over 2,000% in just 40 minutes, reaching a market cap of $4.4 billion. However, the excitement was short-lived as the token plummeted by more than 95%. Libra Token: A Pump and Dump Scheme? As Libra’s price peaked, early investors quickly sold their tokens, causing a huge drop. Screenshots shared online showed that some insiders manipulated the market. They used a trick to drain money from the token, removing stablecoins and leaving other investors with losses. Even though Libra had a trading volume of $1.1 billion, the numbers showed something was wrong with the token. Reportedly, there were 74,500 buy orders, but only 28,900 sales. This showed that a few big sell-offs wiped out smaller investors. Javier Milei Tries to Clear His Name After the crash, Milei deleted his tweet and explained he had no real connection to the project. He claimed he did not know much about Libra when he promoted it. Once he realized the situation, he stopped talking about it and removed the tweet. However, the damage was already done. The fall of Libra affected the whole memecoin market, causing an uproar in the crypto market. Sadly another popular token, TRUMP, also lost $500 million in value just 30 minutes after Libra started crashing. The Impact of Politicians and Celebrities Influence on Crypto Prices Many times, a single tweet from a politician or celebrity can send a digital asset’s price soaring , or crashing. This has happened before, and it will likely happen again. This is because the crypto market is highly influenced by hype. Tesla CEO Elon Musk has influenced the market value of Dogecoin (DOGE) many times. Each time he tweets about it, the price jumps. However, investors have also suffered losses when prices dropped after the hype faded. Musk was even sued for allegedly manipulating the Dogecoin market, but the American entrepreneur emerged victorious. Before President Donald Trump’s scheduled inauguration, TRUMP memecoin was created on the Solana blockchain and shortly after it was launched, it surged in value. President Trump has casually dismissed the token, causing the token to drop significantly. The digital asset is currently under investigation for possible solicitation by financial watchdogs. Milei’s Libra tweet is just the latest example of how risky the crypto market can be. Unless stronger rules are introduced, politicians and celebrities will likely keep influencing crypto prices. People are advised to be careful when investing in coins promoted by famous figures. The post Argentina Token LIBRA Hits $4.4B Valuation, Then Crashed 95% appeared first on TheCoinrise.com .
