Argentina President Javier Millie found himself at the Crossed Currency scandal center after a promotional symbol, Al -Mizan, led huge losses to retailers.
Research Company Nanson estimates that 86 % Among those who invested in Memecoin lost money, as it was in the interest of $ 251 million of losses.
The market value of the Libra has increased for a short period to $ 4.5 billion after Milei supported, only to collapse quickly, and scan gains for most investors.
Meanwhile, a small group of people familiar with a $ 180 million profits moved away. The scandal raised concerns about the role of political figures in the financial markets and the risks associated with the volatile digital assets.
Javier Millie has just destroyed the Mimoin market: hours ago, Argentine President Millie Millikoin launched, $ LibraFor the “growth of their economy”. Within 5 hours, more than $ 4.4 billion was erased from the maximum market. Is this the largest clouds rug in history? (topic)
Solana Blockchain was also placed under scrutiny, as the distinctive symbol and total value (TVL) decreased after the repercussions.
The rise and collapse of the scale and its collapse
The drama began on Friday night when Javier Millie directed his followers to the website claiming to raise money for small companies in Argentina through the scale.
This has caused madness in the encryption market, as automatic commercial robots are trying to make gains in the foreground. Within hours, the market value of Memecoin increased to $ 4.5 billion, attracting thousands of retailers looking for quick profits.
Nansen’s data later revealed the series, a selection of governor has already put themselves for profit. Those familiar with them quickly liquidated their property while retail merchants rushed, creating an artificial prices before a inevitable breakdown.
By the time Millie deleted his original position in X after five hours, the scale has already decreased by 80 % of its peak.
Kelsier Ventures, one of the companies behind the launch of the distinctive symbol, reduced the Libra later as more than just mechanics.
This flagrantly contradicts its initial width as a tool for Argentina’s economy, which is struggling, which leaves merchants wondering whether they have been misled.
Solana stability
The scale collapse also raised concerns about the stability of Solana Bluchin, which hosted the distinctive symbol along with thousands of other speculative cryptocurrencies.
The Solana symbol decreased by 20 % from Friday evening to Tuesday, while the total value of the network preserved in the network decreased from $ 12.1 billion to 8.29 billion dollars, according to Devillaamama data.
Investors now speculate whether more Memecoins may suffer from similar fate.
The controversy has renewed concerns about the dangers of decentralized financing projects (Defi), where unknown early people can manipulate the distinctive code prices before emptying their property on reassured merchants.
A violent reaction against Miley’s participation in the scandal scandal raised broader questions about political approvals in the encryption space.
With the spread of anger throughout Argentina, doubts appeared about whether the president had a victim of fraud himself or if his account had been at risk.
By Monday, Miley tried to distance himself from failure, claiming that he was not aware of the details of the project before deleting his position.
Critics argue that its initial strengthening of the distinguished symbol, without the previous due care, contributed to the huge losses suffered by retailers.
The Libyan collapse has sparked discussions in Argentina about the organization of cryptocurrencies and consumer protection, as the organizers are now facing pressure on the Mimoin speculation.
Although the encryption market is still largely unorganized, this scandal may accelerate discussions on legal frameworks to prevent similar incidents in the future.
The post Libra Crypto Scanal: 86 % of merchants lost money on Javier Milei-Endorsed Memecoin first appeared on Invezz
