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Argentine President Javier Milei invested in the $LIBRA meme coin, which was guaranteed to yield economic benefits. The coin, which skyrocketed, fell and destroyed billions. Milei has been accused of a "rug pull," when project creators abandon a project after luring investors. Lawyers have filed fraud claims.
Milei deleted his tweet, claiming ignorance and initiating an investigation. Political opponents demand his impeachment on accusations of endorsing fraud. Investigations link $LIBRA's developers to past memecoin frauds. A wallet of one developer of a meme coin called MELANIA made a $2.4 million gain by pre-sniping the token. The $LIBRA failure impacted other meme coins like $TRUMP.
Critics assert that Milei's actions undermined public trust. The incident also reveals risks of meme coins and celebrity endorsement. Legal consequences and political fallout are unfolding in Argentina. The incident illustrates the potential for fraud in the memecoin market.
