The latest frenzy that started with the launch of Trump Memecoin of the American president Donald Trump and saw the merchants do and lose millions in a few minutes, could finally collapse with the balance of balance.
Balance, a project based in Solana that the president of Argentina Javier Milei tweeted on February 14, saw his market capitalization increase up to $ 4.5 billion, then drop by more than 80% in a few hours while The initiates collected, leaving many bags with the holders with massive losses.
History has become an international and political incident over the weekend, while during the last two days, Milei has suppressed his original tweet, denied his approval and accused the political opposition of mischief. This finally led to talks of his dismissal and created uncertainty on the Argentinian stock market. Then came an explosive turn in history.
Tuesday, Coindesk announced the news that a key actor behind the balance token had boasted of buying access to the interior circle of the Argentinian president Javier Milei before the scandalous launch and the memecoin crash.
Although these types of kerfuffle for an same being unusual, how it happened and what followed after the “carpet traction” has highlighted the risk of uncontrolled cryptographic trading and the potential of a reputation for the same sector as a whole.
“The Balance episode represents what is a potential point of supersaturation for the same space,” said FNT Financial, based in Toronto, FNT Financial. “At this point, the novelty of the new projects, after Trump and Melania, and now balances, has largely dissipated.”
“In addition, the consequences of reputation of these assets can be important. That said, it seems that this episode is likely to continue to play as new details are emerging.
This incident, as well as other events related to the same that have led many merchants to retail, can push the community to make more efforts for the police itself.
“The whole fiasco of Balance even during the weekend should remind us that all of us in the Defi community is responsible for making this space safer for users,” said Chris Chung, founder of the platform exchange based in Solana Titan.
How “fiasco” happened
The entire episode of Milei and the Libra took place in the space of a few days, from February 14.
As explained by Alex Thorn of Galaxy Research, the token launched this fateful day on a Dex Meteora de Solana, with the initial post of Milei (now deleted) on the social media platform X saying that the goal of the token was D ‘Help growth in growth in growth in the social platform X that the token objective was to help growth in growth in platform growth of social media x that the aim of the token was to help the growth in growth in growth in the social media platform X that the aim of the token was to help the growth in growth in the growth of the growth Large Argentinian economy – a big approval for a same.
Once the price of the token reached its peak of $ 4.4 billion in a few hours, the initiates began to empty their assets immediately, which reports nearly $ 100 million, according to onchain analysts.
The next day, Milei deleted his original post, sending a shock wave within the same community, which saw many similar tokens, like Trump, Milania and others, sold quickly. Meanwhile, Solana, the blockchain on which the token was built, also saw its native token, ground, Fall.
In his new position, Milei said he was not aware of the details of the project and accused the political opposition of mischief, making the situation a policy game. At that time, the token had erased about $ 4.5 billion in retail capital in seven hours. Currently, market capitalization is just over half a million, according to CoinmarketCap data.
The same day, the names of some key opinion leaders (Kol) appeared, notably Dave Portnoy, Threadguy, Hayden Davis and Faze Banks of Barstool, which were involved in one way or another with the project. Portnoy said he was an early investor and was reimbursed his money, further distributing the controversy from which the initiates benefited from the balance of the balance. Davis, meanwhile, revealed that he was behind the same in Balance and Melania and said that the Argentine token incident was “not a carpet traction”, rather “it’s just a plan that has miserably badly turned “.
The next day, the Argentine opposition threatened Milei to dismiss the incident. On February 17, Ben Chow, co-founder of Dex Meteora, where the balance had launched, resigned from the controversy. Chow was also co-founder of the sales associate based in Solana Jupiter. On the same day, the Argentina stock market collapsed by almost 6% on a report of a survey on Milei.
Read more: Apparent Balance Raping Pull is the last “sordid episode” emerging from the so So Solana complex: Galaxy
On February 18, Coindesk announced that Davis said in SMS that he could “control” Milei because of the payments he had made in Karina Milei, a powerful figure in the government of Milei and the president’s sister.
‘Back for Crypto’
What will happen to Milei and all the parties involved is still unknown. However, if FTX’s spectacular eruption is something to pass, there could still be much more to unravel in this story.
What he underlines is that the same drama which has become a play of profit and divided losses, in this cycle, could be at the crossroads. While institutional investors are betting very important on bitcoin and ether with the launch of funds negotiated on the stock market, which makes these assets more user -friendly and stable, the same sector has remained the ugly of the Canette of cryptographic space, And this incident can open up retail participation in retail.
“Overall, this whole story is a real setback for cryptographic space,” said Chung. “If we want to attract new detail users, it’s not how to do so.”