Summary
- LIBRA coin promoted by President Milei crashed 94% in just a few hours.
- Experts view this as a 'rug pull' scam, indicating the crash was caused by mass selling from a few accounts.
- The incident has led to discussions of presidential investigation and potential impeachment motion in political circles.
Controversy erupts as LIBRA meme coin, promoted by Argentine President Javier Milei as a private project to stimulate Argentina's economic growth, plummeted 94% in just a few hours.
According to local daily newspapers Clarín, La Nación, and Ámbito on the 15th (local time), after President Milei posted promotional content about the meme coin on his SNS, the LIBRA coin price, which had been rising sharply due to massive investor influx, crashed dramatically.
Experts view this as a typical scam operation known as a 'RUG PULL'. A rug pull refers to a scheme where project managers collect investors' funds and suddenly disappear with all the money.
The incident that occurred last night has amplified controversy in political circles, with discussions ranging from presidential investigation to potential impeachment motions next week.
President Milei promoted the Solana-based meme coin LIBRA on X (formerly Twitter) at 7 PM on the 14th, posting: "Liberal Argentina grows!!! This private project will be dedicated to promoting Argentina's economic growth and supporting funding for Argentine SMEs and startups. The whole world wants to invest in Argentina" along with related links.
After President Milei's post, the price soared to $4.978 (7,175 won) due to massive investor influx, but crashed to as low as $0.19 (274 won) in just a few hours, dropping 94% from its peak, according to local media.
Experts analyzed LIBRA's initial fund flows and mass selling movements, noting that large-scale selling came from a few accounts, causing the crash when they cashed out and withdrew funds.
While Milei's supporters questioned whether the presidential account had been hacked, President Milei deleted the original promotional post and posted a second explanation at midnight.
He claimed he had no connection to the incident. He explained that he deleted the original promotional post because he posted without knowing the details of the project, and warned that he would not tolerate opposition forces criticizing him over this matter.
Carlos Maslatón, known as an expert in this field, stated that a sitting president's involvement in a meme coin scam could be grounds for impeachment, according to the largest local daily Clarín.
The minority opposition Civic Coalition party is demanding government explanation to Congress, while the Socialist Party is discussing potential presidential impeachment.
Reporter Lee Hui-kyung ddehg@wowtv.co.kr
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
