LIBRA: A Stark Warning for the Crypto Market

Within just 40 minutes of Milei’s post, LIBRA reached a market cap of $4.6 billion before insiders and the wallets holding 82% of the supply began cashing out. They made $87.4 million within the first three hours. Milei then deleted his initial post promoting LIBRA and later stated that he was "not aware of the details of the project." He claimed that after learning more, he decided to stop promoting it and removed his post. Following this, LIBRA’s market cap collapsed to $200 million, wiping out over $4.4 billion. The wider memecoin market also took a hit, with total losses exceeding $6 billion.

This is a truly disgraceful act by the Argentine President, and as a result, he is now facing threats of impeachment from the opposition party for his role in promoting the rug pull. If Milei is impeached, it could set a precedent to deter other celebrities and politicians from launching these scam memecoins. As it stands, there are no real consequences for such actions.

Following Trump’s memecoin launch last month, we’ve seen numerous celebrities and politicians attempt to replicate its ‘success.’ None have succeeded, and Milei’s debacle is arguably the worst yet. These schemes are a massive red flag for the crypto market, draining liquidity from legitimate projects while damaging the credibility of the entire space. The market is caught in an unhealthy cycle, and unless retail investors learn to avoid these traps, these scams will continue to drain liquidity, driving more investors out of crypto as they lose money in rug pulls.

This won’t be the last time we see a memecoin launched by a high-profile figure. Think back to 2021 and 2022, when NFTs were the craze—every celebrity seemed to be launching a project, and nearly all of them ended in scams or rug pulls. Today, it’s memecoins. Anyone can create one in under two minutes.

The moral of the story? STAY AWAY FROM THEM. Focus on the long-term goal of holding Bitcoin. Memecoins are nothing more than distractions, and 99% of the time, they end in a rug pull.

No Advice Warning

The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.

Stormrake is not a financial adviser and does not provide financial product advice. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances. Stormrake is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by this newsletter.

Disclaimer

All statements made in this newsletter are made in good faith and we believe they are accurate and reliable. Stormrake does not give any warranty as to the accuracy, reliability or completeness of information that is contained here, except insofar as any liability under statute cannot be excluded. Stormrake, its directors, employees and their representatives do not accept any liability for any error or omission in this newsletter or for any resulting loss or damage suffered by the recipient or any other person. Unless otherwise specified, copyright of information provided in this newsletter is owned by Stormrake. You may not alter or modify this information in any way, including the removal of this copyright notice.