Supported by Argentine President Javier Milei, the LIBRA token quickly gained attention in the market. Initially, demand surged, pushing the price to record highs; however, it experienced a sudden drop of 90%. While the project aims to support small businesses, speculative trading has led to significant losses for participants.
The Token’s Rise and Sudden Decline
Introduced as part of the Viva La Libertad Project, the token saw rapid growth following Milei’s endorsement. Although the price reached $4.5 in a short time, the withdrawal of large amounts of liquidity by developers and insider trading caused a sharp decline in its value. Analysts highlight the speculative nature of the market.
Insider Trading and Political Developments
Data indicates that investors controlling a large portion of the token’s supply created fear in the market due to liquidity withdrawal. Comments suggested that the underlying structure of the token and insider trading were responsible for investors’ losses. Milei’s recent statements brought attention to the political aspects of the situation.
Initially, Milei claimed the token would benefit the Argentine economy, but later he expressed unfamiliarity with the project details. Consequently, he retracted his previous support statement.
