The Cryptocurrency $ Libra unleashed a strong controversy after the President Javier Milei He promoted it in his social networks. Initially, The Token experienced a rapid increase in its pricebut shortly after suffered a drastic collapsewhich generated doubts and claims, with thousands of users denouncing scams.
Before the growing wave of criticism, Milei eliminated its publication In X and said he was not aware of the project. But it was quickly known that The president had previous contact with the creators of the cryptocurrency.
The scandal soon had repercussions in the political sphere. Different opposition arc figures They questioned the president’s attitude and demanded explanations on your participation in the dissemination of digital asset.
The KIP Protocol company and its creator
The development of the $ LIBRA cryptocurrency is linked to the company Kip protocol, founded by Julián Peh. This businessman held a meeting with Javier Milei in October 2024 during the Tech Forum Latamwhere the possibility of integrating Artificial Intelligence Technologies Decentralized in Argentina’s vision as a global technological hub.
Despite the relationship between Peh and Milei in that event, Kip Protocol denied any link between the president and the creation of $ Libra. According to the company, andThe project was conceived as an initiative to promote the development of private companies In Argentina, without any government participation.
Cryptocurrency experts have cataloged $ Libra as a “Meme” or “Shitcoin” currencyterms used to refer to digital assets without support in the real economy and with extreme volatility. These tokens usually depend on the enthusiasm of the public around a figure or trend to boost their value.
Julio López, an information security analyst, warned that what happened with $ Libra could fit into a fraudulent scheme known as “Rug Pull”. This modality consists of Take advantage of the influence of a public personality To attract investors, artificially raise the price of an asset and then sell it by massleaving buyers without the possibility of recovering their investment.
Preliminary investigations suggest that this operation could have generated profits close to U $ S87 millionfunds that would have been transferred to digital wallets whose owners have not yet been identified.
Donald Trump’s history: he launched his own cryptocurrency with mass losses
The president of the United States, Donald Trump, announced on January 18, through his X account, the launch of his own memecoin, developed in the Red Solana. In less than a day, this cryptocurrency generated a volume of transactions of billions of dollars and experienced an increase of more than 500% in its value. However, the bubble exploded.
The New York Times reported mass losses of investors in Trump Memecoins. Citing data from the Blockchain Chainysis intelligence company, the report stressed that at least 813,000 cryptocurrency wallets lost a total of US $ 2,000 million after buying Trump.
Trump collapsed around 80% since it reached a maximum of US $ 72.60 on January 19, and its market capitalization was reduced from US $ 14,500 million au $ 3,000 million., According to data from data from Coingcko.
This announcement feeds the expectations that Trump implement more flexible regulations for cryptocurrencies, including the possible creation of a strategic reserve of Bitcoin for the United States Treasury. However, since it is a memecoin, the risks associated with its investment are high. It is crucial that investors carry out a detailed analysis before operating with this type of assets, since Memecoins are usually highly speculative And they lack solid technical foundations, which makes them vulnerable to various threats.
Among the most common risks are market manipulation strategies, such as “Pump and Dump”where the price of the token is artificially inflates and then collapsed. These practices may be related to groups that concentrate large amounts of the asset, encourage market interest and, when reaching a high price, sell their mass positions, causing a collapse in value. In the most extreme cases, This can lead to what is known as “rugpull”, where the price of memecoin falls to zeroleaving investors with total losses.
In the middle of the controversy, the commissioned of the SEC, Hester PeirceI declare that the official Trump token (Trump) of US President Donald Trump, do not enter the jurisdiction of the stock exchange and values and are not subject to their supervision.
Source: Ambito
