Key Notes
- Argentine President Javier Milei's meme coin, Libra, surged to a $4.5B valuation before crashing 95%, sparking investigations.
- Blockchain analysts found 34 insider accounts secured $124.6M before Libra's collapse, raising concerns over market manipulation.
- Trump’s meme coin also plummeted from $70 to $17, fueling skepticism as political crypto projects mirror a rigged casino.
A cryptocurrency tied to Argentine President Javier Milei saw a dramatic rise before an even steeper crash, fueling controversy around politically endorsed meme coins. The token, called Libra, launched last Friday, just days after US President Donald Trump and First Lady Melania Trump introduced their own cryptocurrencies.
Memecoins #Shitcoins – The Era of Chaos in Defining Coins, Triggered by Political Tokens?
— Wolfdefi.eth (@wolfdefi_eth) February 21, 2025
The controversy surrounding $TRUMP , $MELANIA, $CAR , and most recently, $LIBRA has sparked a massive wave of discussion, with industry insiders speaking out more than ever.
Putting aside… pic.twitter.com/bIQEuuQhLn
Libra’s sudden collapse is part of a growing trend of politically linked tokens, where coins gain attention due to high-profile endorsements but soon implode. Central African Republic’s President Faustin-Archange Touadera had also entered the meme coin space this month with a token of his own.
Meme coins often experience massive spikes before plummeting. Some, like Dogecoin, maintain relevance due to cult followings and endorsements from such personalities as Elon Musk . Others vanish overnight, leaving investors with staggering losses.
$4.5 Billion Valuation to 95% Crash in Hours
The Libra token, promoted by Milei in a now-deleted post on X, briefly surged past $4.50 on Friday. Within hours, its value plummeted by more than 95%. Blockchain analysts at Nansen reported that while most traders faced losses, 34 insider accounts secured $124.6 million before the collapse.
Authorities responded immediately. A federal judge in Argentina launched an investigation into the token’s release and Milei’s possible role. Argentina’s stock market initially dipped but rebounded quickly as investors dismissed the likelihood of impeachment. Crypto firm Nansen summed up the disaster in a report :
“What started with a presidential endorsement and a $4.5B valuation quickly unraveled as “insiders” took profits, retail got burned, and key backers distanced themselves.”
Trump’s Token Also Takes a Hit
The chaos wasn’t limited to Argentina. Donald Trump’s meme coin, which saw a meteoric rise to over $70 within two days, has since dropped to around $17. Much like Libra, Trump’s coin initially surged on hype before collapsing, leaving many retail investors in financial ruin.
Opinions among crypto analysts remain split regarding political meme coins. Thomas Puech, CEO of Miami-based crypto fund INDIGO, acknowledged both risks and opportunities tied to that trend. He noted that while widespread attention fuels market activity, many inexperienced traders faced heavy losses after misjudging volatility.
Coinbase CEO Brian Armstrong also criticized the frenzy, warning of potential market manipulation:
“Some memecoins have clearly gone too far lately, to the extent people are insider trading. This is illegal, and people should understand that you will go to prison for this.”
Meme Coins or a Rigged Casino?
The wave of political meme coins has led to billions in investor losses, with tokens linked to world leaders such as Trump, Milei, and Touadera seeing massive price crashes. What was once viewed as a fun, speculative investment has started to resemble a rigged casino, eroding trust across the crypto landscape.
“Political Memecoins Killed Trust. Last month, 3 world leaders launched memecoins — every single one rugged. TRUMP #MELANIA dumped on retail. LIBRA wiped out $4.4B in market cap. CAR drained millions from investors. Memecoins were fun, but now they feel like a rigged casino,” one frustrated crypto trader said .
This is not the first time meme coin investors have been burned. A high-profile trader, Dave Portnoy, promoted his meme token, GREED, which saw a staggering collapse.
Dave Portnoy( @stoolpresidente ) created $Greed and bought 357.92M $Greed (35.79% of the total supply).
— Lookonchain (@lookonchain) February 19, 2025
He sold all $357.92M $Greed in a single transaction, causing the price of $Greed to crash by 99%.
And he made ~$258K from $Greed .
Next, Dave Portnoy created $Greed2 and… pic.twitter.com/ItfjJVQOkK
After accumulating 35.79% of GREED’s total supply, he sold everything in a single move, crashing the price by 99%. Despite the wipeout, Portnoy walked away with a $258,000 profit, while some investors lost over $100,000 in mere hours.
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