The president of Argentina, Javier Milei, moved away from the memes of the balance after promoting him in a tweet now deleted.
His clarifications follow accusations that the project developers have attracted around $ 107 million in what seems to be a pump and devesine program.
Balance same controversy corner
On February 14, Milei’s X account approved the balance, a piece, which was based in Solana, which sparked an increase in commercial activity. The market capitalization of the token has briefly reached $ 4.5 billion while investors rushed.
The project said that its objective was to support the economy of Argentina by funding small businesses and local businesses. Julian Peh, co-founder of Kip Protocol, confirmed the involvement of the platform, declaring that his role was to manage the distribution of funds rather than supervising the token itself.
“Our main role is to help manage the allocation of funds to Argentine companies, and less on the side of the tokens. We are not the [Market maker]… We will develop the plan to manage the Libertad project according to the original objective. We would not have obtained the help we did to launch it if we were not serious. Not a single soil will be used outside the management of the Viva La Libertad project, “said Peh.
However, doubts quickly emerged concerning the legitimacy of the launch. Crypto Conor Grogan analyst stressed that the Balance deployment portfolio had received funds from an exchange that does not require knowing your client verification (KYC).
While the concerns rose, Milei addressed the issue, declaring that he had initially shared the project to support a private initiative, which he does regularly.
After a more in -depth examination, he retracted his approval and removed the position. Following its declaration, the balance price dropped by around 90%.
“I was not aware of the details of the project and after becoming aware, I decided not to continue to pass the word (that’s why I deleted the tweet). To the dirty rats of the political caste who want to take advantage of this situation to do harm, I mean that every day, they confirm how vile politicians are, and they increase our conviction to kick them in their ass “Said Milei.
Meanwhile, the Lookonchain blockchain analysis revealed that the initiates had withdrawn from around $ 107 million. Eight portfolios linked to the project moved $ 57.6 million in USDC and 249,671 soil, worth nearly $ 50 million. Analysts suggested that these withdrawals were linked to liquidity handling and accumulated costs.
In addition, Crypto Embercn analyst said the initiates had won at least $ 20.18 million in the leading promotional tweet, buying a few seconds after its publication and selling after prices.
Corners of political and industry reactions
The rebates of the balance highlight the concerns concerning the pieces even politically affiliated. Similar speculation surrounded the launch of the Trump token in January and the Central African Republic.
In both cases, traders rushed to buy before questioning their legitimacy. While these tokens turned out to be authentic, the rapid collapse of the balance has raised alarms within the cryptographic community.
Industry figures condemned the situation. The co-founder of Sonic Labs, Andre Cronje, criticized the trend, suggesting that traders of coins do not engage with financial technology or decentralized blockchain.
“”[Meme coin traders are] A demography that does not care about decentralized finances or even blockchains. Thus, the memes do not steal all attention, because the participants were our participants in the first place, “said Cronje.
On the other hand, the founder of Slowmist Yu Xian called for responsibility, declaring that officials should face legal consequences.
“Support everyone in the defense of your rights; The instigator must be punished by law and, hopefully, they will also be faced with the anger of the president, “added Xian.
The controversy of the balance reflects the risks of speculative coins, especially when they are linked to political figures. The incident has further fueled discussions on regulatory surveillance and the protection of investors in cryptographic space.
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