The crypto information cycle is worsening as meme cash suck the market dry. Talking publicly for the primary time, Milei distanced himself from accusations of market manipulation. He insisted that his social media promotion of the token wasn’t an endorsement for funding however relatively an effort to focus on a crypto-based initiative geared toward supporting Argentine entrepreneurs.
“I’m not a crypto skilled,” Milei informed Todo Noticias in a Monday evening interview. “My experience is financial progress, with or with out cash. As somebody keen about know-how and its potential to fund initiatives, I merely shared the concept.”
But, his endorsement—intentional or not—set off a speculative frenzy. On Friday evening, after Milei directed his huge on-line following to the Libra token, its worth quadrupled inside hours, briefly pushing the market cap to an eye-watering $four billion.
Milei’s deleted X put up. Supply: Kobeissi Letter
Then got here the inevitable crash, leaving retail merchants within the crimson and fueling allegations of a pump-and-dump scheme.
LIBRA chart, what goes up, should come down. Supply: DEX Screener
Political Fallout: Milei Below Hearth
The scandal has handed Milei’s opponents contemporary ammunition. His authorities, which initially remained silent, has now launched an inside probe. In the meantime, opposition leaders have seized on the turmoil, trying to border it because the worst disaster of his administration—although impeachment stays an extended shot, given the two-thirds majority required in Congress.
The president, whereas acknowledging the gravity of the scenario, admitted that his open-door method to financial options would possibly want revision.
“The most important lesson? I can’t preserve being the identical Javier Milei as at all times,” he conceded. “Sadly, I want to begin filtering who will get entry to me.”
Financial system Minister Dismisses ‘Tiny’ Crypto World
As strain mounted, Financial system Minister Luis Caputo was the primary to interrupt the federal government’s silence Monday night, trying to downplay the incident as a distinct segment misunderstanding relatively than outright misconduct.
“Cryptocurrencies are a tiny, infinitesimal world. It’s a specialist area that’s extremely tough to know,” Caputo said. “I don’t perceive crypto both, and it’s been defined to me 800,000 occasions.”
Regardless of his makes an attempt to reassure traders, markets weren’t satisfied. The S&P Merval Index suffered its greatest one-day drop since July, plummeting 5.6% as Buenos Aires merchants dumped shares in prime Argentine corporations.
Social Media Spin: Chainsaws and Trump’s Endorsement
Whereas political and monetary harm management continued, Milei’s crew tried to shift public focus. On social media, the presidential account touted Argentina’s price range surplus and highlighted Milei’s assembly with US Senator Steve Daines. The president additionally posed with a chainsaw—a now-iconic image of his austerity drive—and reshared a put up from Donald Trump, reinforcing his ties to the previous US president.
In November 2024, Milei met with Donald Trump and Elon Musk at Mar-a-Lago forward of the CPAC Investor Summit, marking Trump’s first assembly with a international chief after his November 5 election victory.
Through the occasion, Milei praised Trump’s win, declaring it a victory for liberty and condemning tax methods as compelled wealth redistribution. He additionally counseled Musk, who was set to steer Trump’s Division of Authorities Effectivity, for his function in advancing free speech by means of X (previously Twitter).
Since taking workplace in December 2023, Milei has aggressively minimize Argentina’s authorities, decreasing ministries from 24 to eight, shedding 25,000 public staff, slashing the federal price range by 30%, and privatizing state enterprises like Aerolíneas Argentinas and Intercargo, aligning along with his libertarian imaginative and prescient of minimal state intervention.
Trump with Musk and Milei, Supply: X
Was Milei Duped?
As hypothesis over Milei’s role in the Libra debacle deepens, some allies argue that he might have been tricked. Native media quoted authorities sources suggesting that the actual culprits have been these inside his circle, who did not vet the undertaking correctly.
Including gas to the controversy, Hayden Davis, CEO of Kelsier Ventures, the agency behind Libra, made bombshell claims in an interview with Dave Portnoy of Barstool Sports activities. Davis asserted that the coin’s launch was orchestrated alongside Milei and his crew—although he refused to call names.
Dave Portnoy is on the heart of the meme coin mess, Supply: X
Portnoy, who personally suffered heavy losses within the crash, didn’t mince phrases, calling Libra “the most important rug pull of all time”. Davis later refunded him however insisted Milei wasn’t instantly concerned, as an alternative blaming unnamed advisors inside his interior circle.
“I don’t consider Milei is corrupt,” Davis mentioned. “I don’t suppose he even totally understands what’s happening.”
Authorized Storm: SEC Complaints and Legal Investigations
Authorized repercussions are already piling up. New York-based Burwick Legislation reported that tons of of shoppers who misplaced cash on Libra are exploring potential authorized motion. In the meantime, Moyano & Asociados, an Argentine agency, has filed a grievance with the US Securities and Change Fee (SEC).
Again dwelling, an Argentine decide has been assigned to greater than 100 instances linked to the scandal. Whereas opposition leaders have pushed for impeachment, the political math stays in Milei’s favor—for now.
Subsequent Cease: Washington and the IMF
Regardless of the uproar, Milei is urgent forward along with his worldwide agenda. On Wednesday evening, he departs for Washington, hoping to fulfill Trump and safe US backing for an expanded IMF program—a key aspect in his bid to stabilize Argentina’s fragile financial system.
He’ll additionally try to barter tariff exemptions beneath Trump’s new protectionist insurance policies. However with the Libra scandal nonetheless making headlines, his capability to command credibility on the worldwide stage is now beneath severe query.
For Milei, the crypto fallout is greater than only a market hiccup—it’s a political reckoning that might redefine his presidency.
Meteora Co-Founder Steps Down Amid LIBRA Controversy
In the meantime Ben Chow, co-founder of liquidity protocol Meteora, has resigned following allegations of involvement in a scheme to extract thousands and thousands from memecoin launches, including gas to the continuing scandal surrounding the LIBRA token.
Moty Povolotski, founding father of DeFi Tuna, accused Kelsier Ventures—the market-making agency behind LIBRA—of orchestrating a complicated scheme to siphon funds from traders through Meteora’s memecoin staking platform, M3M3. He additional alleged that Chow had facilitated a community of crypto influencers who reaped huge income on the expense of retail merchants.
In accordance with Povolotski, this was not an remoted incident. He claims comparable techniques have been deployed in earlier memecoin launches, together with MELANIA, MATES, and ENRON. His estimates counsel that over $200 million was funneled to insiders who had entry to token mint addresses earlier than launches, permitting them to front-run purchases and safe hefty income.
On-chain proof from Coffeezilla hyperlinks the LIBRA crew to the ill-fated MELANIA meme coin, Supply: X
Chow has denied any direct monetary involvement, stating, “I’ve by no means acquired or managed any tokens on the facet.” Nonetheless, Meteora’s pseudonymous second co-founder, Meow—who additionally leads Jupiter DEX—introduced Chow’s resignation on X, citing issues over his management.
“Whereas I’m 100% assured about Ben’s character, as a undertaking lead he has proven a scarcity of judgment and care about among the core features of the undertaking, particularly given its present dimension and fame,” Meow wrote. “And that is sadly unacceptable.”
The controversy surrounding LIBRA deepened when the token—endorsed by Argentina’s President Javier Milei—was fast-tracked to a “verified” itemizing on Jupiter inside an hour of launch. The change defended its resolution, stating that LIBRA’s market cap had already reached $1.5 billion, justifying the verification as a protecting measure for customers.
Regardless of the rising scrutiny, Meow insists that neither Jupiter nor Meteora engaged in insider buying and selling or acquired tokens improperly. To handle issues, Jupiter has enlisted the authorized companies of Fenwick & West—the identical agency entangled within the FTX fraud case—to conduct an unbiased investigation and publish a proper incident report.
With reputations and investor confidence on the road, the findings of that report might decide whether or not this scandal is a bump within the highway or a deadly blow for Meteora and its management.
Earlier this week Coffeezilla landed an interview with Hayden Davis (aka Kelsier), one of many 4 key figures behind $LIBRA, alongside Julian Peh (Kip Protocol), Mauricio Novelli (Tech Discussion board Argentina), and Manuel Godoy (Tech Discussion board Argentina). Notably, Javier Milei publicly endorsed LIBRA on February 14, 2025.
Through the dialog, Davis brazenly admitted that the LIBRA crew had sniped the launch of their very own token, whereas the MELANIA crew did the identical for MELANIA. Watch the complete interview under for the main points.
Movie star Meme Cash – A Street to Nowhere
Movie star-backed meme cash have ceaselessly changed into high-profile debacles, with traders shedding thousands and thousands attributable to pump-and-dump schemes or poor undertaking administration. One recent example is Hawk Tuah (HAWK), a Solana-based memecoin launched in 2024 by Hailey Welch, a social media character who went viral for a comedic interview clip.
The Tokenomics of HAWK turned out to be sizzling air as insiders dumped, Supply: X
The token noticed a speedy surge in worth upon launch however rapidly collapsed, with allegations of insider buying and selling and liquidity manipulation surfacing. Related instances embody Caitlyn Jenner’s JENNER token, which raised eyebrows after blockchain sleuths uncovered suspicious pockets exercise linked to insiders. Even Trump’s name wasn’t enough to keep the Trump meme coin price above water.
Rapper Iggy Azalea’s MOTHER coin additionally confronted controversy, as critics accused her of cashing in on meme coin mania with out providing any actual utility. Even mainstream figures like Kim Kardashian and Floyd Mayweather have been fined by the SEC for selling crypto initiatives with out disclosure. These debacles spotlight the risky and infrequently reckless nature of celebrity-endorsed cryptocurrencies, the place hype ceaselessly outweighs substance, leaving followers and traders holding the bag.
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