Argentina's meme coin LIBRA collapses, losses reach over $4.4 billion

Argentina’s LIBRA coin experienced a flash crash that wiped out $4.4 billion of its market value, affecting the entire meme coin market.

The crisis began with a post by Argentine President Javier Milei, who personally promoted the project, saying that it was aimed at boosting the Argentine economy.

However, the project lacked transparency, as network analysis showed that 82% of the cryptocurrency was concentrated in a single wallet.

Within three hours, insiders extracted $87.4 million through liquidity manipulation, using unconventional methods to withdraw funds without direct sales.

LIBRA then fell by more than 90%, and the losses extended to $6 billion in the crypto market, leading to a decline in other meme coins, including Trump’s coin.

After the incident, President Milei deleted his post and denied any connection to the project, describing it as a political conspiracy.

However, data from Bubblemaps and Ember CN confirmed that the team behind LIBRA mined $107 million across eight wallets, in one of the fastest meme coin collapses in history.

We have confirmed in many previous posts and articles on Bitcoin Arabs that meme coins are very risky currencies and that seeking to make a profit from them is fraught with risks and staying away from them is better and safer.