Less than two weeks ago, we talked about the Central African Republic’s memecoin disaster, and now the news cycle has been dominated by Argentina’s own over the last few days.
Here is a timeline of what happened:
Launch and Endorsement:
The $LIBRA memecoin launched on the Solana blockchain on February 14, 2025.
It gained rapid attention after Argentine President Javier Milei promoted it on social media, suggesting it was a private initiative to bolster Argentina’s economy by funding small businesses.
Milei shared the token’s contract address, leading to a surge in public interest.
The Rapid Rise and Fall:
Following Milei’s endorsement, the memecoin’s market capitalization shot up to about $4.5 billion.
However, within a few hours, the coin’s value dropped like a bag of sand, losing around 89% of its value.
Naturally, people started questioning the token’s legitimacy and stability.
Allegations and Investigations:
The incident led to allegations of a potential scam and accusations that Milei had participated in it—an actual president pumping and dumping a memecoin.
Opposition politicians called for Milei’s impeachment, and legal investigations were initiated to determine if there were grounds for criminal charges.
There were also many questions raised about the movement of large amounts of Solana from the LIBRA liquidity pools to a few wallets. This could indicate insider manipulation or a rug pull—a scheme where developers drain funds, leaving investors with worthless tokens.
Political and Legal Fallout:
The whole fiasco raised questions about the ethical implications of influential figures promoting volatile financial products. Celebrities have done this too, and in all cases, these memecoins have dropped off a cliff.
President Milei has denied personal gain and called for investigations into the incident. He also pointed out that very few of the people who lost money were Argentine.
Memecoins are stupid
It’s been a nightmare for Milei, but he should not have gotten himself into this mess. I am a huge fan of Milei and his smal government philosophy which has brought some true revolution to Argentina. He messed up here.
I am also a fan of cryptocurrency and how it genuinely provides an alternative financial system that’s not controlled by the likes of Mthuli and Mushayavanhu.
However, memecoins are a joke and should not be taken seriously. It all started as a joke with DOGE and remains so. Memecoins come with no promise or ambition at all.
They are not trying to change the financial system, they are not introducing new technology or anything like that. They are just a wild “trust me, bro” pyramid scheme.
There is absolutely no reason why one should invest in memecoins, but people still do. I think everyone believes they are cleverer than the rest, thinking they will get out before it crashes.
However, there’s no transparency with memecoins, and the rug is pulled before you can pull out. You don’t want to play that game—but if E-Creator succeeded for as long as it did, it’s clear that too many people think they know when to get out, and not all do so successfully.
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