What Is LIBRA? What Is the Price of LIBRA Token?
According to the market data of the innovation zone on Gate.io, the current price of the LIBRA token is $0.062, with a circulating market value of $16 million. Since the token was launched on February 15th, the price has reached a high of $4.5, a drop of 99% from its all-time high.
At 4 a.m. on February 15, 2025, the LIBRA meme coin was launched on the Solana blockchain, quickly attracting the attention of the cryptocurrency community. The LIBRA project was initially promoted as a private initiative aimed at promoting the development of the Argentine economy through investment in small and startup companies. With the public endorsement of Argentine President Javier Milei, the market value of LIBRA tokens soared to an astonishing $4.5 billion within hours of launch.
However, the frenzy of LIBRA coin did not last long. Within just three hours, the token’s price plummeted by about 89%, causing the evaporation of billions of dollars in market value. This sudden collapse has sparked serious doubts about the stability and legitimacy of the token, and has led to widespread speculation about ‘Pump-and-Dump’ and ‘RugPull’ schemes. The LIBRA meme coin incident has become a cautionary tale of extreme volatility in the crypto market, especially for those assets lacking intrinsic value or practical applications.
Controversial endorsement by Milei
President Javier Mile’s role in the LIBRA meme coin incident has triggered a political storm in Argentina. He initially publicly supported the token, calling it a ‘private initiative’ that would help the Argentine economy recover. However, after the token’s collapse, Mile himself became embroiled in scandal.
The consequences of the LIBRA collapse are extremely serious for the Milae government. The opposition accuses him of involvement in financial fraud, resulting in significant losses for about 40,000 investors. The Argentine National Supreme Court has received over 100 complaints against Milae. Prosecutors have launched an investigation to determine if there is enough evidence to bring criminal charges against Milae and other individuals involved.
Faced with increasing pressure, Mile denied profiting from the LIBRA project and stated that he had no connection with the company issuing the token. He emphasized that his original intention was to support a private project that promotes economic development. However, this controversy still casts a shadow over his presidency and reform agenda.
Expose LIBRA
With the collapse of the LIBRA meme coin, an on-chain analyst revealed a carefully orchestrated trading network, indicating a complex pump and dump scam. Investigations show that about 20 minutes before President Mille announced support for the token, a Web3 wallet address received 1 million LIBRA tokens and quickly added them to the liquidity pool of Meteora, a DeFi platform on the Solana network.
The operation mode of LIBRA token is as follows:
- Tokens are rapidly injected into the liquidity pool, creating the illusion of market activity.
- President Milai promoted LIBRA on social media, triggering FOMO (fear of missing out) among investors, leading to a large influx of retail funds.
- The price surged in a short period of time, and the market value exceeded 4.5 billion US dollars.
- The backstage team quickly started selling, leading to a rapid price drop.
Further analysis revealed that multiple addresses associated with the LIBRA team have begun withdrawing funds from the Solana fund pool in Meteora, gradually causing a decrease in the token price. Approximately $7.8 million worth of Solana (SOL) has been withdrawn from the pool, and the funds have been transferred through two wallets suspected to belong to the LIBRA team, ultimately converging into a single address.
Blockchain analysis company Bubblemaps conducted an in-depth investigation, revealing the close connection between LIBRA token and the infamous MELANIA token project. The investigation found that these two projects are extremely similar in early wallet distribution and pump-and-dump tactics, indicating that they may have been planned by the same team.
Legal consequences and market impact
The LIBRA meme coin scandal has triggered wide legal and market repercussions. In Argentina, an interdepartmental investigation group has been formed to jointly investigate the case by financial regulatory agencies and anti-money laundering agencies. Former central bank officials have filed lawsuits accusing President Mile of playing a key role in the project.
Market impact is equally significant. After the LIBRA incident, Bitcoin‘s market share rose to a four-year high of 60%. QCP Capital analysts say that the ‘pumping and dumping’ scandal of the LIBRA project may suppress the market sentiment of altcoins in the long term.
This incident reveals the three major challenges in the Web3 field:
- Government endorsement ≠ project credibility.
- Insider trading and market manipulation are still rampant.
- Community self-governance, especially with the involvement of technical experts, may be more effective than traditional regulation.
As the cryptocurrency market continues to evolve, the LIBRA meme coin scandal highlights the need to strengthen regulation and investor education.
Conclusion
The LIBRA meme coin incident once again reminds people of the high risk of the cryptocurrency market. President Mile’s support and the dramatic collapse of the token highlight the necessity of caution when investing in digital assets. This event may not only reshape Argentina’s political landscape but also affect the global cryptocurrency market sentiment.
Risk Warning: Future regulatory measures or market changes may have unexpected impacts on cryptocurrency investments.
