President Javier Milei’s probe into the LIBRA coin has left Argentina embroiled in a crypto crisis. It all began when Milei used social media to promote LIBRA, which caused its price to skyrocket. However, the token fell within hours, shocking investors and causing them to wonder what went wrong.
The Wild Ride Of LIBRA
LIBRA first appeared to be a promising new investment. The price quickly increased following the president’s promotion on social media, drawing in more eager purchasers. Almost as fast, though, it fell by more than 90%, losing millions of dollars in value.
Almost immediately, the investments of those who purchased in at the height of the coin’s popularity vanished. Many questioned whether the incident was a tragedy — or something more sinister after the coin suddenly collapsed.
Who Is Actually Responsible?
The fact that nobody knows who made LIBRA simply makes things more confusing. Initially believed to be involved, the KIP Protocol denied any involvement in the project. Rather, the coin has been associated with Kelsier Ventures.
La Oficina del Presidente informa que el pasado 19 de octubre el Presidente Javier Milei mantuvo un encuentro con los representantes de KIP Protocol en Argentina en el que se le comentó la intención de la empresa de desarrollar un proyecto llamado “Viva la Libertad” para…
— Oficina del Presidente (@OPRArgentina) February 16, 2025
But there is no formal proof of who started LIBRA, or who was responsible for its abrupt upswing and downswing. Because of the lack of transparency, there is conjecture that this might have been a pump-and-dump scam in which early insiders profited before the coin caused trauma.
The Government Intervenes
Milei requested an investigation into the token and withdrew his post after criticism. Investigators are now looking into whether investors were deceived, fraud was orchestrated, and who profited from the token’s downfall.
Meanwhile, the market has responded. Even after a 95% bounceback from its low, LIBRA is still down 50% from its peak. Significant price variations illustrate how unpredictable the market is for investors.
A Takeaway For Cryptocurrency Traders
The whole thing should serve as a warning to people who trade cryptocurrencies, but then it’s not fair to say that trading crypto, per se, will make people become mendicants, based on this particular incident.
As of right now, the majority of cryptocurrency marketplaces are unregulated, which means that values can either go up or down in the blink of an eye.
A large number of investors are currently advocating for more transparent regulations and guidelines in order to prevent catastrophes such as this one from occurring.
The findings of Argentina’s study may result in fundamental shifts in the manner in which the country deals with cryptocurrency in the years to come.
In spite of the fact that the future of LIBRA is still uncertain, there is one thing that can be said with certainty: investors will most likely think twice before putting their money in another project that has been overhyped now that their faith in Argentina’s cryptocurrency business has been shaken.
Featured image from 104.5 WOKV, chart from TradingView
