LIBRA: How a Presidential Endorsement Led to a Crypto Crash

Argentina’s President Javier Milei recently found himself at the center of a crypto controversy after a post from his official X (formerly Twitter) account promoted a Solana-based meme coin named LIBRA. The unexpected endorsement led to a meteoric rise in the token’s value, only to be followed by a dramatic crash, sparking speculation about the project’s legitimacy and the president’s potential involvement.

The Mysterious Rise of LIBRA

On February 14, 2025, Milei’s verified X account posted a message promoting LIBRA, describing it as a private initiative aimed at stimulating Argentina’s economy by funding small businesses and local enterprises. The post, written in Spanish, stated:

“La Argentina Liberal crece!!! Este proyecto privado se dedicará a incentivar el crecimiento de la economía argentina, fondeando pequeñas empresas y emprendimientos argentinos. El mundo quiere invertir en Argentina.”

(Translation: “Liberal Argentina is growing!!! This private project will be dedicated to promoting the growth of the Argentine economy, funding small businesses and entrepreneurs. The world wants to invest in Argentina.”)

Within hours of the post, the price of LIBRA skyrocketed, reaching an all-time high of $4.50 and pushing its market capitalization to approximately $4.5 billion. According to data from crypto analytics platform DexScreener, the token generated over $1.1 billion in trading volume in just a few hours.

The Sudden Collapse

Despite the initial excitement, the surge in LIBRA’s value was short-lived. Within hours, the token’s price nosedived by 89%, falling to just $0.50. Investors who had rushed to buy LIBRA in the wake of Milei’s endorsement were left reeling from massive losses, leading to accusations of a classic “pump-and-dump” scheme.

This sharp decline raised concerns over the legitimacy of the project. Many crypto enthusiasts and analysts questioned whether LIBRA was a legitimate initiative backed by Milei’s administration or simply an opportunistic token leveraging his name for credibility.

Was This an Official Government Initiative?

At the time of writing, there has been no official confirmation from President Milei or his administration regarding whether the post was an authorized endorsement or if his account had been compromised. Given that Milei has been an outspoken supporter of economic liberalism and Bitcoin in the past, his involvement in promoting a meme coin was met with skepticism by some political analysts.

Moreover, the rapid price manipulation of LIBRA bears resemblance to past meme coin projects that gained attention through high-profile endorsements before collapsing. Some experts believe that Milei’s name may have been used without his knowledge, as has happened with other political figures in the crypto space.

Crypto Scams and the Risks of Political Endorsements

Meme coins, while popular, are highly volatile and often subject to manipulation. The LIBRA case echoes similar incidents where celebrities, politicians, and influencers have been unknowingly linked to cryptocurrency scams.

For example, in 2022, Tesla CEO Elon Musk’s Twitter account was repeatedly targeted by hackers promoting fraudulent cryptocurrency giveaways. Similarly, in 2023, Indian Prime Minister Narendra Modi’s X account was hacked and used to promote a fake government-backed crypto initiative.

The LIBRA debacle highlights the risks associated with investing in meme coins and the growing trend of political figures being linked—knowingly or unknowingly—to cryptocurrency projects.

What’s Next for LIBRA and Crypto in Argentina?

Whether or not President Milei was directly involved in promoting LIBRA, the incident has drawn attention to the growing intersection between politics and cryptocurrency. Argentina has one of the highest crypto adoption rates in Latin America, driven by economic instability and high inflation. Milei himself has previously expressed pro-Bitcoin sentiments, advocating for free-market principles in the financial sector.

If the Argentine government does not clarify its stance on LIBRA, the project will likely fade into obscurity as another failed meme coin experiment. However, if the president’s team confirms official backing for the project, it could mark an unprecedented shift in how governments engage with blockchain-based economic initiatives.