What led to Libra Argentina being recognized as a meme coin?

Introduction

Libra Argentina, known by its ticker symbol $LIBRA, quickly gained notoriety in the world of cryptocurrency as a controversial meme coin. This reputation was the result of several factors including its launch and endorsement, market impact, and the subsequent controversy and investigations involving it.

Launch and Endorsement

The $LIBRA memecoin was initially launched with the endorsement of Argentine President Javier Milei, who touted it as a private initiative designed to stimulate the Argentine economy. Despite this high-profile backing, Milei swiftly withdrew his support for the project, sowing seeds of doubt and uncertainty in the minds of potential investors[1][2].

Market Impact

The tokens launch had a significant, albeit short-lived, impact on the cryptocurrency market. It managed to reach an impressive market capitalization of $4.5 billion within a matter of hours. However, the coins value crashed by 97% shortly thereafter, resulting in substantial losses for investors. This rapid rise and fall further cemented $LIBRAs reputation as a volatile and risky meme coin[1][2].

Investigation and Controversy

The $LIBRA project has been embroiled in controversy since its inception. Milei, the Argentine president who initially endorsed the coin, is currently facing fraud investigations and potential impeachment due to allegations of misleading investors. Critics have labelled the project as a rug pull scheme, a term used in the cryptocurrency world to describe a situation where insiders profit while retail investors are left with significant losses[2][3][4]. This controversy and ongoing investigation have only added to $LIBRAs reputation as a notorious meme coin.