From Hope to Havoc: How Argentina’s Meme Coin Libra Sparked a Political Firestorm
The beginning of 2025 has been a truly eventful and complex time for the Web3 industry. Even though the crypto market remains in a state of stagnation and many investors are eagerly awaiting the long-anticipated bull run, the industry itself continues to stay in the spotlight thanks to a wave of major events, loud scandals, and significant news. Every day it becomes more obvious: even without chart growth, Web3 is still evolving and full of surprises.
In this article, the Coinmooner team would like to highlight one particularly explosive news story that shook the crypto community. It’s about a recent political and economic scandal surrounding the meme coin Libra, which went from being "a symbol of Argentina’s economic hope" to a sign of financial disaster in just a few hours. Lawmakers in the country couldn’t ignore it and have already taken steps to uncover the full details of this high-profile case.
At an emergency parliamentary session, three key resolutions were passed to investigate the launch and sudden collapse of Libra thoroughly. The first resolution involves the establishment of a special investigative commission to investigate the matter thoroughly. 128 deputies voted in favor, 93 were against, and 7 abstained. This vote alone demonstrates the divisive nature of the issue, even within the legislature.
Libra’s 3000% Rise and 90% Fall: What Really Happened?
The second resolution calls for questioning top-ranking Argentine officials. Among them are Chief of Cabinet Guillermo Francos, Economy Minister Luis Caputo, Justice Minister Mariano Cúneo Libarona, and the head of Argentina’s Securities Commission, Roberto Silva. These officials will need to explain their role in the Libra project and justify their public support for such a questionable initiative.
The third resolution requires executive authorities to provide comprehensive reports on the development of the Libra token and the government's involvement in promoting it. Interestingly, these measures were approved despite strong resistance from members of the ruling party, "La Libertad Avanza" (Freedom Advances), hinting at possible internal conflicts and attempts to cover up specific facts.
The Libra scandal broke out on February 14, after President Javier Milei promoted the meme coin on the social media platform X. He claimed the token could serve as a new economic lever to pull the country out of the crisis. Following his post, the token's price skyrocketed by over 3000%, but just hours later, it crashed by 90%. The president quickly deleted the post and said he wasn’t aware of the project’s details, which only fueled the outrage.
Later, during a preliminary investigation, some troubling details emerged. It turned out that insiders, including those from the company Kelsier Ventures, had gained access to a large number of tokens before the public launch and likely manipulated the liquidity in the early stages, pocketing over $110 million in profits. These actions resulted in significant losses for retail investors, with many losing their savings.
In March, the law firm Burwick Law filed a class-action lawsuit against Kelsier Ventures, KIP Protocol, and Meteora. The charges include market manipulation, fraud, and misleading investors. According to court documents, the developers retained up to 85% of the total token supply, allowing them to control the market and potentially "dump" tokens at the peak of hype while promising the public steady growth and government support.
Coinmooner strongly advises all crypto market participants to remain vigilant and use only trusted security tools. Always remember: even during the most exciting times, the market remains a playground not just for innovation but also for scams. Practice digital hygiene, verify your sources, and don’t fall for loud promises. It’s the only way to protect your assets and confidently move forward in the world of Web3.
