Calls for stricter regulations on politically supported cryptocurrencies after $4 billion Libra collapse

From Cointelegraph
March 14, 2025 04:15 AM:

Industry experts caution that politically supported cryptocurrencies need stronger investor protections and liquidity safeguards to prevent market collapses. The Libra token, backed by Argentine President Javier Milei, lost $4 billion due to insider cash-outs. Eight insider wallets withdrew $107 million, triggering the collapse, resulting in 74,698 traders losing $286 million.

To prevent future disasters, tokens with presidential endorsements should have robust safety measures like liquidity locking. DWF Labs recommends launch restrictions to limit bot and whale activity to ensure a fair launch for all participants. Transparency in token launches is crucial to empower users to make informed decisions.

Troubling developments emerged post-meltdown of the memecoin endorsed by the Argentine president. It was an “open secret” in some circles that were aware of the token’s launch weeks ahead. Milei requested an investigation into government members, including the president, for potential misconduct. Impeachment calls have been made against Milei for endorsing the rug-pulled cryptocurrency.

Read more at Cointelegraph: Calls for stricter rules on political memecoins after $4B Libra collapse