Argentine President Javier Milei promoted a Solana-based memecoin called LIBRA on social media, causing its market cap to briefly surge to $4 billion before plummeting by 99%. Milei deleted his post, claiming he was misled, while a LIBRA developer admitted to artificially inflating both LIBRA and Melania Trump's memecoin using insider funds. Crypto analyst Simeon Koch argues that this incident highlights the larger issue of manipulation within the altcoin space, where projects prioritize attracting retail investors to dump overvalued tokens rather than focusing on sustainable innovation. Memecoins were initially seen as a fairer alternative to venture capital-backed projects, but they have fallen into the same cycle of insider manipulation. The collapse of LIBRA reflects this trend and has damaged the credibility of the altcoin market, causing retail investors to leave and experienced investors to lose faith. Koch suggests that the focus on short-term gains needs to be replaced by a focus on real innovation and trust-building for long-term growth.



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