$LIBRA the crypto pump & dump scheme behind Argentina’s presidential woes?

South American nation Argentina’s President Javier Milei has been criticised for endorsing the cryptocurrency token $LIBRA, which witnessed a pump and dump scheme in the market, causing loss for several investors, according to multiple media reports. 

With the President’s backing and the recent turn of events, the meme coin has sparked political turmoil situation as Javier Milei faces calls for impeachment from the nation’s opposition.

“While many made fortunes due to privileged information,” said the former president of Argentina Cristina Fernández de Kirchner, who is also Milei’s main opponent. Kirchner also highlighted that thousands of people who trusted the President have lost millions in this pump and dump crypto scheme. 

$LIBRA coin

$LIBRA is a cryptocurrency token issued by Hayden Davis, the chief executive officer of a crypto investment firm called Kelsier Ventures, reported the news agency, Bloomberg. Like the Trump and Melania meme coins, the $LIBRA token is hosted on the Solana blockchain platform.

The $LIBRA is trading 34.8 per cent higher at $0.4624 as of 11:21 p.m. (IST), with its market capitalisation at $119.83 million, on February 17, according to Coinmarketcap data. 

The meme coin’s market capitalisation dropped from its level of $223.69 million on February 14 to $77.32 million on February 15, marking a 65.43 per cent loss in one day.

Since its low, the crypto token has recovered some of its losses, trading higher as of February 17.

How is the President linked?

The $LIBRA token was created minutes before Milei’s post on the social media platform X, reported the news portal Indian Express, citing a CNN report.

Earlier, the President said that the crypto would help the nation’s economy and foster an environment for small businesses to grow.

The token jumped after the endorsement from the South American president but soon dropped after Milei deleted the original X post and denied having any ties with the $LIBRA token.

After the raging controversy, the official account of the Argentina Government posted that the nation had created a special investigations unit to look into the matter and the allegations.

“The President of the Nation has decided to create an Investigation Task Unit (UTI) within the orbit of the Presidency of the Nation, composed of representatives of the bodies and organizations with powers related to cryptoassets, financial activities, money laundering, and other related areas, which will integrate their information in order to initiate an urgent investigation regarding the launch of the cryptocurrency $LIBRA and all companies or persons involved in said operation,” according to the post.