Argentina's "Bitcoin President" Gets Accused of $100M Meme Coin Rug Pull

The crypto world is buzzing about LIBRA, a meme coin endorsed by none other than Argentina's pro-crypto president. While not directly named after the president like the TRUMP token, LIBRA was hyped as the next big presidential meme coin with similar wealth-creation potential.

Image: Crypto investors react to the LIBRA rug pull on social media.

However, unlike TRUMP, LIBRA's story took a dark turn. Reports of massive losses surfaced quickly, revealing that even crypto heavyweights like Solayer founder Chaofan Shou and a Solayer engineer lost over $2 million on LIBRA. Shou even posted, "Let's see what two hackers and a free weekend can bring us," hinting at potential exploits.

But why did LIBRA fail despite seemingly having all the right ingredients: a presidential endorsement, moonshot potential, and deep liquidity pools? Why were so many unable to profit from LIBRA? The answer points to a classic crypto pitfall: a presidential pump followed by a team rug pull.

Presidential Endorsement Turns into Team Cash-Out

President Milei's tweet endorsing LIBRA, complete with the contract address (CA) and official website link, was the catalyst for the meme coin's explosive growth. Echoing Trump's crypto-friendly stance, and after confirming his account wasn't hacked, LIBRA's market cap soared to a staggering $4 billion.

Milei's tweet stated, "This private project will work to promote the growth of Argentina's economy by providing financial support to Argentine small businesses and entrepreneurial ventures."

Image: President Milei's endorsing tweet for the LIBRA meme coin.

But the narrative quickly shifted. Within two hours of launch, after briefly hitting a $4.4 billion market cap, massive sell-offs began. Initially, some thought it was just early investors taking profits. However, the relentless price drop revealed a more sinister truth: the team was draining liquidity from the pool – a classic rug pull.

By 9 AM, crypto analytics platform Bubblemaps reported that the LIBRA team had already siphoned off over $87 million through multiple addresses.

Image: Bubblemaps analysis showing the LIBRA team's wallet activities and fund withdrawals.

By noon, blockchain monitoring service Lookonchain identified eight wallets linked to the LIBRA team. These wallets had allegedly extracted 57.6 million USDC and 249,671 SOL (approximately $49.7 million) by adding liquidity, removing it, and claiming fees. The total estimated rug pull amounted to a whopping $107 million.

Image: Lookonchain's on-chain analysis detailing the team's profit extraction from LIBRA.

Despite the red flags, some traders still clung to hope, speculating that the lack of official denial might signal future positive developments that could revive the coin's price.

Image: Crypto traders discussing the potential for LIBRA's recovery despite the rug pull allegations.

President Backpedals, Project Team Admits Involvement

Any lingering hopes were dashed by Milei's subsequent tweet, where he attempted to distance himself from the project.

The president claimed he had supported a "private entrepreneurial project" but had no affiliation with it. "I was not aware of the details of the project, and after learning about it, I decided to stop disseminating information related to it (hence deleting the tweet)," Milei stated.

Image: President Milei's tweet attempting to retract his LIBRA endorsement.

On Valentine's Day, Milei delivered a crypto heartbreak. LIBRA's market cap, already down to $450 million, plummeted to $200 million following his distancing tweet.

Adding another layer of absurdity, a project actually stepped forward to claim responsibility for LIBRA. The Viva la Libertad project website declared it a "private, independent project" developed by KIP Protocol.

Image: Viva la Libertad project website claiming responsibility for LIBRA.

As LIBRA spiraled towards zero, Web3 AI infrastructure layer KIP Protocol announced the launch of "Viva la Libertad," aimed at supporting Argentine private enterprises. They credited LIBRA's success to community trust and support but clarified that President Milei had no past or present involvement. KIP Team stated their role was managing fund distribution to Argentine companies, not token development.

Image: KIP Protocol's announcement about the Viva la Libertad project and their role in LIBRA.

This incident serves as a stark reminder of the risks in the meme coin market, especially with celebrity or political figure endorsements. Always DYOR (Do Your Own Research) and be wary of projects promising overnight riches, even when backed by seemingly credible figures. The LIBRA saga highlights the wild west nature of crypto and the importance of caution in the face of hype.