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On Friday evening at precisely 7 p.m., Argentine President Javier Milei took to X to unveil LIBRA, a newly launched cryptocurrency token. Along with the announcement, he shared its contract address, introducing the project as a private initiative designed to stimulate Argentina’s economy.
“This private project will be dedicated to incentivizing the growth of the Argentine economy by funding small businesses and Argentine enterprises. The world wants to invest in Argentina,” Milei wrote.
The reaction was swift and frenzied. Within just 30 minutes, LIBRA’s price skyrocketed from $0.216 to an astonishing $5.54, igniting a speculative frenzy. One particularly fortunate trader, seizing the opportunity the moment Milei posted, managed to turn a $216,000 investment into an eye-watering $6.5 million in mere minutes.
However, the euphoria was short-lived. By the 40-minute mark, a wave of massive sell-offs triggered a catastrophic 80% crash, wiping out millions in value almost instantly. What initially appeared to be a natural market correction soon revealed itself to be something more sinister.
Crypto analysts quickly pointed out that a disproportionate amount of selling activity originated from wallets linked to the development team itself. As accusations swirled, Hayden Davis, one of LIBRA’s founding members, acknowledged that the team had indeed liquidated over $100 million in tokens. However, rather than taking full responsibility, Davis pointed the finger at “” snipers”—traders who had entered early and executed rapid sell-offs.
The incident left investors stunned, raising concerns over the ethics of the project’s execution and fueling debates over transparency in political endorsements of cryptocurrency. As LIBRA’s dramatic rise and fall played out in real time, many were left wondering whether this was an unfortunate case of market volatility—or a textbook pump-and-dump orchestrated from within.
The Aftermath of LIBRA: A Market in Freefall
In his defense, Hayden Davis claimed that the development team’s sell-off was a strategic move—a preemptive attempt to remove liquidity and stabilize the market. The plan, according to him, was to reinject the funds once the so-called “snipers” had offloaded their holdings.
(In simpler terms, the developers rugged before the would-be ruggers could rug them.)
However, the situation spiraled out of control when President Milei abruptly deleted his original post. Confidence in LIBRA collapsed, triggering a full-scale market meltdown.
The result? A staggering 75% of investors were wiped out.
8% lost between $1 and $1,000
7% lost between $1,000 and $10,000
9% lost between $10,000 and $100,000
The biggest winner walked away with $8.5 million.
The biggest loser burned $5.25 million.
The economic shock didn’t stop at crypto. Argentina’s stock market took a 5.7% nosedive, while political tensions skyrocketed. Impeachment discussions began swirling around Milei, who responded by withdrawing from public view, retreating into closed-door meetings with his closest advisors.
But this isn’t just a story about Argentina.
It’s a stark reflection of the larger, inevitable confrontation between governments and the crypto industry—a volatile, high-stakes battleground where political influence, financial speculation, and regulatory uncertainty collide.
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