$Libra carpet pull spark controversy
The $libra carpet pull case has caused a wave in the cryptocurrency community and beyond. The controversy stems from a connection to Argentina President Javier Milei. $libra has been promoted to a token that contributes to Argentina’s economic growth, and instead $abrean has become one of the most important carpet cases in recent memory.
this $Libra Token Launched on February 14, 2025, President Javier Milei made a massive promotion through X (formerly Twitter) posts. The token quickly gained appeal, reaching a market value of US$4.56 billion. Investors flocked to the ground, attracted by claims that tokens would fund local businesses and boost national economies. Within a few hours, the token crashed catastrophically. Its value fell by 95%, eliminating nearly $4 billion in market cap. Blockchain data shows that insiders cashed in more than $107 million in liquidity during the crash, allowing investors to absorb losses.
Source: StableMark
Survey tools such as Bubble Maps found that 82% of $Libra’s supply is concentrated in one cluster. This raises doubts about the legitimacy of the token. Transparency in crypto projects is crucial, and the lack of it in $libra’s case just raises concerns about malicious intentions.
President Miley’s response
After the token collapsed, President Miley deleted his promotional position and issued a statement far from the project. He claimed that he had no direct involvement and no prior knowledge of token details. However, his promotion timing and subsequent withdrawal time resulted in widespread criticism. Opposition MPs demanded that he impeachment and believed his recognition contributed to the financial losses faced by investors.
Source: CNN
The incident has escalated into a political crisis. The opposition has used the incident to question President Millie’s judgment and credibility. Argentina’s FinTech Office acknowledged the incident as a potential carpet pull, calling it an international embarrassment.
Participate in KIP protocol and other entities
The KIP protocols related to the project have faced strict scrutiny. The CEO of the KIP protocol denied participating in the $Libra launch but admitted guilty of fraud worth nearly $100 million. For unusual moves, the CEO proposed to buy back the full supply of tokens for $100 million, claiming to be affected investors seeking solutions. Critics labeled it as another pumping program that benefits insiders again. The investigation also linked the KIP protocol to other suspicious projects, further undermining its reputation.
The pulling force of the $libra carpet puts the Solana ecosystem at significant damage. Solana’s reputation as a leading blockchain network is stunning by its association with tokens. Jupiter Exchange, a platform in the Solana ecosystem, admitted to knowing about the project a few weeks before its release. Despite Jupiter’s denial of participation, the lack of transparency further undermines trust. Trading volumes across the ecosystem have fallen, some of which compare the consequences to levels in December last year.
