The meme coin LIBRA, initially confirmed by Argentine President Javier Milei, collapsed over 94% shortly after its launch due to insider trading allegations and liquidity withdrawals. The project, lacking a clear tokenomics disclosure, witnessed insiders dumping $87 million worth of tokens within hours, leading to a market cap wipeout of $4.5 billion. On-chain analysts discovered that 82% of the token supply was controlled by a handful of wallets, raising concerns about a centralized pump-and-dump scheme.

Milei quickly distanced himself from the project after the scandal erupted, claiming he was unaware of its details and deleting his promotional tweets. However, this is not the first time he has stirred controversy over cryptocurrency - he previously promoted CoinX, a Ponzi scheme that defrauded millions of dollars from investors.

The collapse of LIBRA has raised greater concerns about political figures endorsing speculative cryptocurrency assets, following similar meme coin launches associated with Donald Trump.