Yigit Taha OZTURK 
Libra (LIBRA), the cryptocurrency backed by Argentine President Javier Milei, turned into a financial disaster just hours after its launch. Insider wallets siphoned $107 million, crashing the token’s price and erasing 94% of its total market capitalization.
Insiders Pulled $107 Million
On-chain analytics platform Lookonchain reported that at least eight wallets linked to the Libra team drained liquidity from the token, withdrawing 57.6 million USDC and 249,671 SOL (worth approximately $49.7 million).
Lookonchain stated:
“The LIBRA team has cashed out $107 million! Eight wallets linked to the LIBRA team acquired 57.6 million USDC and 249,671 SOL by adding liquidity, removing liquidity, and claiming fees.”
This massive rug pull happened just three hours after the token was listed on decentralized exchanges.
How Did Libra Token Collapse?
Initially, Libra surged to a market capitalization of $4.56 billion shortly after launch. However, following the insider cashouts, the token’s market cap plummeted to $257 million within 11 hours.
Following the collapse, Argentine President Javier Milei deleted his X (formerly Twitter) post endorsing the token. Later, he issued a statement blaming political opponents, saying:
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“To the filthy rats of the political caste who want to take advantage of this situation to cause harm, I want to say that every day they confirm how vile politicians are, and they only strengthen our conviction to kick them out.”
Warnings Were Issued Before the Collapse
Several blockchain analysis firms had already warned investors about Libra’s flawed tokenomics. Bubblemaps revealed that 82% of the token supply was unlocked and could be sold immediately, raising serious concerns.
Additionally, the project failed to provide any preliminary information about its tokenomics—another major red flag for experienced crypto traders.
Memecoin Craze Continues
Despite the risks, celebrity-endorsed memecoins continue to attract significant investor interest. On January 18, Donald Trump launched his Trump (TRUMP) token, followed by Melania Trump‘s Melania Meme (MELANIA) token on January 19.
Although these speculative projects are highly volatile, some investors manage to profit from them. On February 14, a crypto trader made $28 million in profit by buying the Broccoli memecoin, inspired by Binance co-founder Changpeng Zhao’s dog. However, speculation remains that this wallet may have been an insider.
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