LIBRA Coin Scandal: Insiders Cash Out $107M While Crypto Market Faces a Token Flood

Argentina’s President Javier Milei Steps Away from LIBRA Meme Coin

On February 14, Argentina’s President Javier Milei promoted the LIBRA meme coin. His tweet made the coin’s market cap jump to $4.5 billion. Many people believed the project would help Argentina’s economy. The developers said they would use funds to support small businesses. Investors thought it was a great opportunity. They rushed to buy the token. The excitement grew fast.

Insiders Cash Out $107 Million

Crypto experts found strange activity. Insiders secretly withdrew $107 million. They moved the money into private wallets. Some traders also made $20.18 million. They bought tokens seconds after Milei’s tweet. Then, they sold them after the price went up. Experts also noticed another issue. The wallet that launched LIBRA was linked to an exchange without KYC verification. This raised big concerns.

Milei Deletes Post, LIBRA’s Price Crashes

Milei later changed his stance. He said he supported the project as a private initiative. After learning more, he deleted his post. LIBRA’s price dropped by 90%. Investors lost huge amounts of money. Many felt betrayed.

The Bigger Problem with Political Meme Coins

LIBRA’s collapse worried many people. Other political meme coins, like TRUMP and CAR, also caused speculation. Experts warn these coins hurt investor trust. Some demand legal action against those involved. The crypto community now debates stricter rules to prevent scams.

Record Number of New Cryptocurrencies Raises Concerns

In past crypto bull runs, Bitcoin led market growth. Profits flowed from Bitcoin to Ethereum. Later, money moved into altcoins. Eventually, speculative meme coins gained value. This cycle fueled excitement.

Institutional Investors Are Reshaping Crypto Liquidity

Now, institutional investors are changing this pattern. Gabriel Halm explained this shift. He said traditional finance firms are entering crypto. Their presence is reshaping liquidity. Money moves differently than before.

Bobby Ong from CoinGecko shared his views. He said the market lacks strong altcoin rallies. Too many tokens weaken market momentum. Liquidity spreads too thin across multiple assets. Traders now focus on many different tokens at once.

Ong highlighted another issue. He said the crypto space may surpass one billion tokens in five years. More tokens will continue to thin out liquidity. The market will face serious challenges ahead. Investors should stay alert to these trends.