Memecoins are known to be highly volatile and are often associated with rug pulls. As reported by Blockchain News on Jan. 21, 2025, a Cuban-linked Solana memecoin CUBA resulted in a $30 pull in less than 24 hours. Earlier on Dec. 4, 2024, another memecoin Hawk Tuah (HAWK) resulted in a rug pull with its value dropping from $500 million to $60 within just minutes.
Recently, another rug pull linked with Argentina’s president Javier Milei has emerged. According to a recent post by Lookonchain, one investor made $6.72 million from the LIBRA token by using insider info. This trader who had made $1.3M on the TRUMP memecoin, created and loaded two new wallets just before the launch of Libra.
The two wallets were identified as 8izu…dZEE and 7qN8…5ao7. Once the coin went live, the trader spent $2.02 million to buy LIBRA tokens worth 5.08 million. This trader then sold the tokens for $8.74 million once the token surged leaving him with a profit of $6.72 million.
According to a previous post by Lookonchain, the two wallets from the trader above were among the 11 insider wallets that made a total of $43.8 million from dumping LIBRA.
LIBRA Token Mega Rug Pull; Details
The Kobeissi Letter, a leading commentary page for global capital markets, shared that the president of Argentina Milei posted about the LIBRA token on X on Feb.15, 2024. The post promoted the token stating “this private project will be dedicated to encouraging the growth of the Argentine economy by funding small Argentine businesses and startups.”
Milei went ahead to share the project’s website and along with the name for the crypto (LIBRA). However, 5 hours later he deleted the post and tried to distance himself from the project. “I did not know the details of the project and after learning about it, I decided not to continue promoting it,” the post read.
Despite distancing himself from the project, the damage occurred. LIBRA rose to $4.4 billion in market capitalization, then dropped in a literal straight line as insiders cashed out of the memecoin as mentioned earlier.
Following the rug pull, the president has faced a lot of backlash. The opposition lawmakers are even considering impeaching Milei over the matter. “This scandal, which embarrasses us on an international scale, requires us to launch an impeachment request against the president,” stated Leandro Santoro according to a report by Reuter. Santoro is a lawmaker and a member of the opposition coalition.
Milei Creates Task Force To Investigate the LIBRA Project
Based on a recent development, the president of Argentina has ordered the creation of the Research Task Unit (UTI) in the orbit of the Presidency of the Nation. This task force will “initiate an urgent investigation regarding the launch of the cryptocurrency $LIBRA and all the companies or people involved in said operation.”
Additionally, the post shared by the Office of the President earlier today stated that the president has allowed the Anti-Corruption Office (OA) to investigate the matter. The OA will “determine if there was improper conduct by a member of the National Government, including the President himself.”
Nonetheless, the LIBRA memecoin rug pull has awed the crypto market. Despite several memecoins like TRUMP being successful at launch, investors are always at risk of losing money in memecoin rug pulls. Having strict a regulatory framework around the creation, launch and promotion of memecoins is crucial to prevent such incidents in future.
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