Argentina President Faces Impeachment Threat Over $107M Meme Coin Collapse

- Argentina President Javier Milei's Supported Libra Token Plunges 94% - Insider Trading and Market Manipulation Allegations, $107 Million in Cash Liquidated [Unblock Media] The cryptocurrency project Libra, which was publicly endorsed by Argentine President Javier Milei, has plummeted, causing a significant political backlash. After Milei's backing, the token experienced a rapid increase in value, only to lose 94% in just 11 hours, leading to massive losses. This has propelled calls for Milei to take responsibility, further intensifying the political crisis. The Libra token soared on February 14 when Milei promoted the project on the social media platform X (formerly known as Twitter). He provided promotional material, including links to the project's website and contract address, suggesting that it would contribute to Argentina's economic growth. Following this promotion, the token's market cap surged to $4.56 billion. However, large-scale liquidation by insiders led to a 94% drop, bringing its value down to around $257 million. Blockchain data analytics firm Lookonchain reported that insider wallets liquidated $107 million worth of liquidity within just three hours of trading. This included $57.6 million in USD Coins and $24.96 million worth of Solana (SOL). These insider trades are seen as major signs of market manipulation, resulting in severe losses for investors. Blockchain analysis company Bubblemaps had previously warned of flaws in the tokenomics of the Libra token. The token's initial supply allowed 82% to be immediately saleable, implying a structural vulnerability to mass sell-offs. Reliable projects typically limit initial circulation and gradually release tokens to the market, but Libra was issued without such stabilizing mechanisms. President Milei claimed after the incident that he was unaware of the project's specifics and asserted, "I have no connection to this incident." He called for the Anti-Corruption Office to investigate the entire government, including himself, in a bid to emphasize transparency. However, some political figures, including opposition parties, are calling for his impeachment. Milei's response has further fueled controversy. He accused political opponents of trying to capitalize on the situation, referring to them as "filthy rats." This has only intensified backlash from his critics. Moreover, revelations of his past meetings with KIP Protocol leaders, alongside his support for the crypto project, have damaged his political credibility. The Libra incident serves as a critical example of the broader implications for the cryptocurrency market, emphasizing the significant impact that endorsements by public figures and politicians can have. In the United States, former President Donald Trump and Melania Trump have each launched 'TRUMP' and 'MELANIA' meme coins, contributing to market volatility. The Libra situation underscores the need for careful scrutiny of public figure endorsements in the cryptocurrency arena. The Libra episode starkly illustrates both the potential and inherent risks of blockchain technology. Consideration of token market opaqueness, the dangers of insider trading, and the influence of political factors on financial markets is essential. Institutional safeguards and regulatory improvements are necessary to prevent such occurrences. For the cryptocurrency market to restore trust, there must be greater transparency and robust investor protections in place.