LIBRA Collapses, Investors Trapped in Billions in Losses: Alleged Rug Pull By The President Himself?

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With all its potential for huge profits, the world of cryptocurrency often tempts investors to jump in without hesitation. However, as experienced by dozens of investors who invested in the LIBRA meme token, the hope of getting rich overnight often ends in a harsh reality.

The LIBRA token, promoted by Argentine President Javier Milei, has suddenly become the focus of much attention.

Lulled by the promise of big profits, investors flooded the market and bought the tokens. However, what happened next was shocking.

Analysis of recent transactions from Imk.fun revealed a shocking fact: as many as 24 addresses were recorded as having lost more than US$1 million. In fact, 61 other addresses lost more than US$500,000. Along with the sudden surge in prices, many felt they would reap quick profits, but the reality was quite the opposite.

Fantastic Loss: One Owner Lost Up to US$5.187 Million

One of the biggest losses came from an investor who bought 2.1 million LIBRA tokens for US$5.6 million, hoping to make a profit as the price of the tokens rose. However, the outcome was very different.

The price of LIBRA tokens fell sharply, and the investor was forced to sell his entire holding for just US$430,000, suffering a loss of US$5.17 million, or around Rp. 80.65 billion.

This loss is equivalent to buying a luxury house in an elite area, only to see the house’s value fall up to 90 percent in a few days.

Libra Chart Source: Dexscreener.com

Not only were losses suffered by investors, but suspicious activity behind the collapse of LIBRA began to surface.

Further analysis showed that eight wallets allegedly linked to the LIBRA development team withdrew a large amount of liquidity, approximately US$107 million. The withdrawal consisted of 57.6 million USDC and 249,671 SOL, raising suspicions of rug pull, a fraudulent practice in which developers withdraw large funds after the token price skyrockets, leaving investors with worthless assets.

Promotion by the President of Argentina

The commotion over LIBRA grew after the President of Argentina, Javier Milei, promoted the token through his social media account. Milei’s great influence among the public, as well as the public’s expectations of his administration, caused the price of LIBRA to skyrocket.

Source: @JMilei/X

However, when the losses began to mount, Milei quickly deleted the post and claimed that he was not directly involved in the project. In a since-deleted tweet, Milei even blamed his political opponents and said they were trying to exploit the situation for nefarious purposes.

Widespread Political Impact in Argentina

The presence of LIBRA has not only shaken the crypto market but also the Argentine political world. The opposition has called for an investigation into government involvement, even threatening to impeach Milei.

They argue that a senior official promoting this kind of risky asset could harm the public, especially those who do not fully understand the risks involved.

The Argentine Presidential Office has also intervened and requested the intervention of the Anti-Corruption Office to investigate whether there is any involvement of government members in the project. The results of this investigation will later be submitted to the court to assess whether there are parties who have committed criminal acts related to the KIP Protocol, a project connected to the LIBRA token.

Valuable Lessons: Be Careful Investing in Crypto

The tragic story of the LIBRA token is an important reminder of the great risks involved in crypto investing. The promise of instant profits can easily blind us to the potential losses that lurk.

Just like buying a lottery ticket, investing in a new token carries very high risks. Without careful research and a good understanding, investors can be trapped in huge losses, as experienced by those involved in LIBRA.

In the world of digital investment, which is full of uncertainty, it is important for us always to be vigilant and think clearly. Don’t be trapped by the sweet promise of tempting instant profits.

Do thorough research and understand the risks before deciding to invest. Because, as LIBRA investors have proven, dreams of getting rich overnight can easily turn into unexpected nightmares.