Argentina’s LIBRA Crypto Crashes by 92% – Real Deal or Red Flag?

LIBRA Crypto Crashes 92% – Is This Solana Token a Risk or Opportunity?

Argentina’s President Javier Milei’s LIBRA Token Surges, Then Crashes 92%

A new Solana-based meme coin, LIBRA, linked to Argentina’s President Javier Milei, saw a dramatic rise and fall within hours. After being promoted on X (formerly Twitter), the LIBRA token surged to a peak of $4.50 before crashing by 92.86%, raising concerns about its legitimacy.

LIBRA’s Rapid Rise and Fall

Late Friday, a post from Milei’s X account introduced LIBRA crypto, sparking a buying frenzy. The crowd quickly rushed in to purchase the token, bringing the prospective market cap of near $4.5 billion. But very soon, massive sell-offs ensued due to doubts on the authenticity of such a project, and the price crashed dramatically.

Currently, LIBRA'S price is $0.1869 USDC, with a market capitalization of $186.9 million, as per the DexScreener data.

Concerns Over Trading Volume and Liquidity

Despite its collapse, LIBRA token has seen over $1.11 billion in trading volume within hours. The token’s liquidity remains at $43 million, but on-chain analysts have raised red flags about its fairness.

Blockchain firm Chainalysis found that a single wallet controls a large portion of the token supply. Additionally, Bubblemaps, an on-chain data firm, reported that the team behind LIBRA has already withdrawn $87 million from liquidity pools, possibly profiting from the token’s rapid rise.

What is LIBRA and Why Was It Created?

According to the Viva La Libertad Project, LIBRA crypto aims to support Argentina’s economy by funding small businesses and startups. A post from Milei’s X account stated:

“This private project will encourage the growth of the Argentine economy by funding small Argentine businesses and startups.”

However, many investors remain skeptical due to concerns about centralized control and liquidity drain.

Is LIBRA a Legitimate Project?

While Milei confirmed to Bloomberg Línea that he did share the LIBRA token launch, he clarified that it is not his personal project. This has left traders uncertain about its credibility.

Similar doubts surrounded Donald Trump’s $TRUMP token when it launched. However, that coin later gained legitimacy. Whether crypto LIBRA will follow a similar path remains to be seen.

What’s Next for LIBRA?

Currently, the $LIBRA coin is trading at $0.1869 USDC, down nearly 93% from its peak. Many traders are now wondering about the LIBRA crypto price prediction—whether it can recover or continue to decline.

Investors are now watching for further updates. While some believe the LIBRA crypto price may stabilize, others fear it could be a pump-and-dump scheme.

As always, traders should do thorough research before investing.