Overview
In February 2025, Argentine President Javier Milei posted on X (Twitter) promoting a Solana-based memecoin called $LIBRA, reportedly associated with a project called "Viva La Libertad." The presidential endorsement sent the token's market cap soaring to over $4 billion within hours as retail investors rushed to buy. Within the same day, insider wallets dumped massive holdings, crashing the price over 95% and wiping out billions in retail investor value.
The scandal became one of the most significant political-crypto controversies in history. Investigations revealed that insiders connected to the token's creation extracted an estimated $100-200 million in profits while retail buyers were left holding worthless tokens. Milei initially promoted the token, then deleted his post, then claimed he was merely sharing information about a project he'd been told about. Argentine prosecutors opened investigations, opposition parties filed impeachment proceedings, and the incident became a case study in why political figure endorsements of cryptocurrencies are extremely dangerous.
Community
The Milei token briefly generated one of the largest memecoin communities in crypto history, driven by the unprecedented nature of a sitting president promoting a token. The initial community was largely Argentine retail investors and global memecoin traders. After the rug pull, the community split between victims seeking legal recourse and a smaller group of holders hoping for a recovery that never came. The incident damaged trust in crypto among Argentine retail investors.
Liquidity
At peak, the token had billions in nominal liquidity on Solana DEXs. Post-crash, liquidity evaporated. The initial liquidity was heavily manipulated, with insider-controlled pools creating the appearance of depth. Post-rug, remaining liquidity is negligible and concentrated among bots and speculators trading the remnants. Any remaining market activity is pure speculation with no fundamental basis.
On-Chain Metrics
On-chain analysis was devastating for insiders. Blockchain investigators traced wallet clusters that accumulated tokens before Milei's post, dumped during the peak, and extracted funds through multiple wallets and bridges. The speed of the dump — within hours of the presidential endorsement — indicated premeditated coordination. On-chain data became key evidence in legal investigations. Transaction patterns are textbook rug pull mechanics.
Development
There is no meaningful development. The token had no technology, no roadmap, no utility, and no team building anything. The associated website was minimal. This was purely a vehicle for insider enrichment leveraging a political figure's endorsement. Any claims of development or utility were marketing fiction.
Risk Assessment
This token represents the highest possible risk category. It is a confirmed rug pull promoted by a sitting president, with ongoing legal investigations. Buying the remnants carries legal, financial, and reputational risk. The token could be seized or blacklisted as investigations proceed. Regulatory consequences may extend to anyone involved in promoting or profiting from the token.
Risk Factors
- Confirmed rug pull: Insiders extracted $100-200M at retail expense
- Presidential scandal: Ongoing legal and political investigations in Argentina
- Zero utility: No technology, product, or development of any kind
- Legal liability: Token may be classified as a security or fraud instrument
- Reputational toxicity: Association with the token carries negative connotations
- Complete value destruction: 95%+ decline with no recovery basis
Conclusion
The Milei token incident is a watershed moment for crypto regulation and political involvement in digital assets. A sitting president promoting a memecoin that was subsequently rug-pulled, destroying billions in retail value, is unprecedented. The incident validates every criticism regulators have leveled at the memecoin sector: no disclosures, insider manipulation, retail exploitation, and zero accountability. Whether Milei was complicit, negligent, or merely used by promoters is for Argentine courts to determine. What's clear is that retail investors were destroyed, insiders profited massively, and the token has zero value or purpose. This is not an investment — it's a crime scene under investigation.