"Argentina's Markets Plummet 6% After President's Memecoin Endorsement Backfires"

Argentina's markets experienced a significant drop of 6% following a controversy surrounding a memecoin endorsed by the country's president, Javier Milei. The LIBRA token, launched on the Solana blockchain, gained widespread attention after Milei appeared to endorse it on social media. The token's market value surged to $4.5 billion within hours of its launch, only to plummet by more than 80% as insiders sold their holdings.

The rapid collapse of the LIBRA token led to estimated losses of $4.5 billion in retail capital within just seven hours. The token's market value has since dropped to approximately half a million dollars. The incident has raised concerns about the risks associated with unregulated crypto trading and the need for improved self-regulation and user protection measures.

The controversy deepened when President Milei deleted his endorsement post and claimed ignorance of the project's details, accusing political opponents of mischief. This led to calls for his impeachment from opposition parties and caused the Argentine stock market to fall nearly 6% following news of an investigation.

On February 18, CoinDesk revealed text messages from Hayden Davis, a key figure behind the LIBRA token, claiming he could "control" Milei through payments made to the president's sister, Karina Milei, who holds a powerful position in the government. Several high-profile individuals were linked to the project, including Barstool's Dave Portnoy, who admitted to being an early investor but said he received a refund.

The fallout from the LIBRA token incident led to the resignation of Ben Chow, co-founder of DeX Meteora where the token was launched. Chow also held a position as co-founder of Solana-based trading aggregator Jupiter. The incident affected the broader crypto market, with Solana's native token SOL experiencing a price decline. Other memecoins, including TRUMP and MELANIA, also saw rapid selling in the aftermath.

Meanwhile, the cryptocurrency industry saw a separate development as FTX's bankruptcy estate began distributing its first round of repayments. The estate released $1.2 billion to customers with claims under $50,000, marking the start of a larger repayment program that could total more than $16 billion. Sunil Kavuri, a self-described "champion" for FTX creditors, warned newly repaid customers against