"LIBRA Token Plunges 85%: Centralization Fears Emerge Amidst Insider Profits"

The LIBRA token, backed by Argentine President Javier Milei, has experienced a significant crash, losing 85% of its value following the removal of $87 million in USDC and SOL from liquidity pools by the development team. This move has raised concerns about centralization, as 82% of the token's supply is concentrated in connected addresses.

The token, which initially reached a fully diluted valuation of $4.5 billion, saw its top 100 holders face average losses exceeding 56% from their initial purchase price of $1.6. On-chain analyst EmberCN reported that suspected insiders profited around $20 million from trading LIBRA tokens, with at least three addresses exhibiting a similar trading pattern.

The LIBRA token is claimed to be part of the Viva La Libertad Project, aimed at supporting Argentina's economy by funding local businesses and startups. KIP Protocol, the developer of the KIP Protocol web3 framework for AI applications, is linked to the project and is backed by Animoca Ventures. KIP Protocol has been active in Argentina, joining the Buenos Aires City Government's blockchain committee and meeting with President Milei in October 2024.

The launch of LIBRA came after the Central African Republic (CAR) launched a $CAR memecoin as a national experiment to unite people and support national development, according to President Faustin-Archange Touadéra on his official X account last Sunday. Following President Touadéra's statement, the token blew past $1 billion in market cap but quickly crashed to below $20 million.