LIBRA Launch Leads to 90% Drop Amidst Controversy in Argentina
Argentine President Javier Milei defended his promotion of the LIBRA memecoin despite its 90% drop after reaching a $4.5 billion market cap. He claims no wrongdoing, highlighting his focus on economic growth.
The S&P Merval index fell over 5%, following Argentina's recent exit from recession. Observers note that this incident may damage confidence in memecoins, particularly after other recent failures like TRUMP.
- Ben Chow, co-founder of Meteora (associated with LIBRA), resigned amid the controversy.
- Chow denied any misconduct but acknowledged poor judgment regarding project management.
- There are concerns about insider selling and increasing scrutiny on political involvement with memecoins.
- Experts suggest this could reduce demand for Solana (SOL).
The ongoing situation raises questions about future memecoin launches linked to political figures.