Bybit CEO on ‘brutal’ $4M Hyperliquid loss: Lower leverage as positions grow
The recent $4 million loss suffered by decentralized exchange (DEX) Hyperliquid has sparked a conversation about the risks and challenges faced by both centralized and decentralized exchanges. The incident, which involved an Ether whale’s high-leverage trade, highlights the need for risk management measures in the crypto industry.
On March 12, a crypto investor used 50x leverage on the Hyperliquid DEX to turn $10 million into a $270 million ETH long position. However, when the trader tried to exit the position, they were unable to do so without tanking their own position. As a result, the Hyperliquidity Pool (HLP) was left to bear a $4 million loss.
Hyperliquid clarified that this was not a protocol exploit or a hack, but rather a result of the trader withdrawing collateral and offloading assets without triggering a self-inflicted price drop. Smart contract auditor Three Sigma described the trade as a “brutal game of liquidity mechanics.”
In response to the incident, Hyperliquid has lowered its leverage trading for Bitcoin and Ethereum, increasing the maintenance margin requirements for larger positions. Bybit CEO Ben Zhou commented on the trade, noting that centralized exchanges also face similar challenges and that their liquidation engine takes over whale positions when they get liquidated.
Zhou suggested a more dynamic risk limit mechanism that reduces the overall leverage as the position grows. He also emphasized the need for risk management measures such as surveillance and monitoring to spot market manipulators on the same level as a centralized exchange.
The incident has also had a significant impact on Hyperliquid’s assets under management, with a net outflow of $166 million on the day of the trade. This highlights the importance of risk management and the potential consequences of high-leverage trading.
The incident serves as a reminder that while decentralized exchanges offer many benefits, they also come with their own set of risks. As the crypto industry continues to grow and evolve, it is crucial for both centralized and decentralized exchanges to implement effective risk management measures to protect their users and assets.
Will Bitcoin price reclaim $95K before the end of March?
Bitcoin’s price was up 3% after constant drawdowns since the end of January. The top cryptocurrency managed to rebound above $80,000 after a brief decline below the range on March 11. Bitcoin weekly chart. Source: Cointelegraph/TradingViewAfter the US core Consumer Price Index (CPI) came in lower than expected at 3.1% on March 12, Bitcoin’s market structure now sees the possibility of a quick bullish turnaround. Bitcoin liquidity clusters at $84K-$85KAfter Bitcoin’s (BTC) price tumbled on March 9, it rebounded to test the overhead resistance zone between $84,000 and $85,000 three times, spurring traders to aggressively build short positions in this range.The liquidation heatmap data suggested that more than $300 million in short positions were piled in this price region, which would be liquidated if the price moved above the $85,000 resistance. Bitcoin 1-week liquidation heatmap. Source: CoinGlassWith a lack of downside liquidity below $77,000, the probability of BTC moving toward upside liquidity increased. Moreover, triggering liquidations above $85,000 could fuel further bullish momentum, allowing Bitcoin to form a higher high and turn this level into new support. A CME Bitcoin futures gap from the previous weekend also remained unfilled between $85,000 and $86,000. With a 100% record of six gaps filled in the past four months, this setup further increased the chances of flipping the overhead resistance into support at $85,000. Bitcoin 4-hour chart. Source: Cointelegraph/TradingViewIf this happens, the next major resistance lies at $90,000, which could liquidate over $1.6 billion in short positions for a retest of the $95,000 resistance level above, i.e., a 12% jump from the current price. Related: Bitcoin must secure weekly close above $89K to confirm bottom has passedBitcoin analyst Mark Cullen underlined a similar outlook for Bitcoin but warned that the price continues to move “correctively,” implying further sideways movement before a short squeeze. On the contrary, Valeria, a crypto analyst and funded trader, said that BTC was showing signs of distribution near the $85,000 range, which is short-term bearish. The trader highlighted that the BTC price might thread lower below $80,000 before a bullish breakout occurs.Coinbase, Binance diverge on orderbook trendsSpot traders on Binance have been aggressively selling over the past few days, according to data from Aggr.trade, with selling pressure peaking during the local lows at $76,650. Conversely, Coinbase spot buyers placed bids here, leading to BTC’s rebound above $80,000. Binance, Coinbase orderbooks. Source: Aggr.tradeOn March 12, a similar discrepancy was observed, with Binance spot traders selling near the $85,000 resistance, as Coinbase traders defended the price at $81,000 during the early US trading session, avoiding further downside. Related: Crypto trading volume slumps, signaling market exhaustion: AnalysisWhile Coinbase has led BTC’s rally in the past, an opposing stance between the two leading exchanges might slow BTC’s momentum to move swiftly through the resistance levels. Thus, for Bitcoin to reclaim higher highs at $85,000, $90,000 and $95,000 over the next couple of weeks, spot trading activity between the two major exchanges may need more collective direction.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
3 reasons why Ethereum can outperform its rivals after crashing to 17-month lows
Ether (ETH) fell 13% between March 8 and March 11 as investors moved to short-term fixed-income and cash positions, seeking safety amid a global tariff war and rising fears of an economic downturn. ETH price needs 29% gains to reclaim $2.5KMarket concerns escalated after the United States responded to Canada’s electricity surcharge with retaliatory measures.S&P 500 futures (left, magenta) vs. Ether/USD (blue). Source: TradingView/CointelegraphTypically, traders tend to overreact, increasing the likelihood that Ether will rebound faster than other assets once market sentiment improves. While some argue that risk assets are driven by inflation and economic growth data, others believe gains depend on stimulus measures and monetary expansion.Regardless of the catalyst for the next bull run, Ether price must climb 29% from its current $1,940 level to reclaim $2,500. This move will likely require increased demand from leveraged buyers, whose activity is now at its lowest point in five months.ETH 2-month futures annualized premium. Source: Laevitas.ch/CointelegraphTraders want higher prices to compensate for longer settlement periods, making a 5% to 10% annualized premium (basis rate) expected in neutral markets. When rates fall below this range—such as the current 4.5%—it signals weak bullish conviction.Excessive optimism played a role in Ether’s recent correction, as $235 million in leveraged long positions were liquidated between March 10 and March 11.The panic selling drove ETH to a low of $1,744, its lowest level since October 2023. However, several indicators suggest a potential recovery, as ETH derivatives and onchain metrics show resilience.Ethereum L2 network growsEther is trading 60% below its $4,868 all-time high from November 2021. This decline is largely due to increased competition in the smart contract sector and waning demand for applications such as non-fungible tokens (NFTs), gaming, collectibles, metaverse projects, social networks, and Web3 infrastructure.However, this perspective overlooks a key factor. In late 2021, the average transaction fee exceeded $50, while activity on Ethereum’s layer-2 ecosystem was 97% lower than it is today. For context, a token swap on Ethereum’s base layer cost $1.70 on March 11 despite the number of daily average operations per second growing, highlighting notable progress in network efficiency.Ethereum layer-2 daily average operations per second. Source: L2beatEven if bots generate 80% of layer-2 transactions, the remaining 20% of activity on Base, Arbitrum, Optimism, ZKsync, and Blast is still roughly three times higher than Ethereum’s base layer. However, critics have a valid argument: despite the surge in network activity, validators are earning significantly less compared to late 2021.Ethereum regains DEX top-spot, TVL grows Ethereum has reinforced its position as the second-most popular option for institutional investors in traditional finance, supported by $8.9 billion in spot exchange-traded funds (ETFs). Meanwhile, competitors such as Solana still await regulatory approval for similar ETF products. Even if they gain approval, they cannot match the first-mover advantage of the Grayscale Ethereum Trust, which began public trading on over-the-counter markets in June 2019.Moreover, Ethereum smart contract deposits, measured by total value locked (TVL), reached their highest level since July 2022 in ETH terms on March 11, marking a 10% increase over the past two weeks.Related: The strategic crypto reserve will fuel ecosystem growthEthereum network TVL, ETH. Source: DefiLlamaAt 24 million ETH, Ethereum’s TVL has been driven by the growth of liquid staking, lending, yield farming, and real-world asset tokenization. The network recently reclaimed its leading position in decentralized exchange volumes, reaching $20.5 billion over seven days and surpassing Solana’s $13.9 billion, according to DefiLlama data.This provided a bullish outlook for ETH’s price, driven by layer-2 transactions nearing all-time highs, reclaiming of the top spot in DEX volume, and rising TVL deposits. Ultimately, Ether’s trend reversal remains highly dependent on macroeconomic improvements, but once stabilized, ETH is well-positioned to regain $2,500 as a key support level in the coming weeks.This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Europeans show little interest in digital euro, ECB study reveals
European consumers have shown minimal interest in adopting a central bank digital currency (CBDC), raising concerns for the European Central Bank (ECB) as it prepares for a potential rollout of the digital euro.An ECB working paper on “Consumer attitudes towards a central bank digital currency,” which surveyed about 19,000 respondents across 11 euro-area countries, highlighted significant communication challenges that are discouraging European households from adopting the digital euro. When asked to hypothetically allocate 10,000 euros (roughly $10,800) across various assets, Europeans allocated only a small portion to the digital euro, having little impact on traditional liquid assets like cash, current accounts or savings accounts.Reasons for not adopting a digital euro for retail payments. Source: European Central BankAccording to the March 12 ECB working paper, Europeans have a strong preference for existing payment methods and see no real benefit in a new type of payment system amid myriads of offline and online alternatives:“This finding also suggests that convincing some users of the value added of a CBDC might pose a challenge for policymakers, and more research will certainly be needed in this area.”The study suggested that while a digital euro could be introduced with minimal disruption to financial stability, its adoption faces significant hurdles due to consumer habits. Additionally, it stressed the importance of targeted communication to address persistent consumer reluctance toward a digital euro.Post-treatment attention checks conducted on European respondents. Source: ECBThe ECB paper found that European consumers were receptive to video-based education and training and concluded that educating the masses with CBDC-related video information could help with the widespread adoption of the digital euro:“We find evidence that consumers who are shown a short video providing concise and clear communication about the key features of the digital euro are substantially more likely to update their beliefs about this new form of payment, which, in turn, increases their immediate likelihood of adopting it compared to an untreated control group.”Related: European lawmakers silent on US Bitcoin reserve amid digital euro pushThe study’s release comes as US lawmakers intensify their opposition to CBDCs. Speaking at the House Financial Services Committee hearing on March 11, Representative Tom Emmer said Congress should “prioritize pro-stablecoin legislation alongside anti-CBDC legislation.”Emmer speaks during the House Financial Services Committee Hearing on CBDCs. Source: emmer.house.govEmmer said, “CBDC technology is inherently un-American” and unelected officials should not be allowed to issue it. Emmer also reintroduced the CBDC Anti-Surveillance State Act, which would prevent future US administrations from launching CBDCs.Meanwhile, Deutsche Börse CEO Stephan Leithner recently called for the establishment of a permanent digital euro, among other reforms, to strengthen the region’s financial autonomy.Magazine: Crypto fans are obsessed with longevity and biohacking: Here’s why
How to buy Bitcoin with a credit card
Key takeawaysBuying Bitcoin with a credit card offers nearly instant transactions and convenience, but it costs you higher fees and potential blocked transactions from card providers.Centralized exchanges like Coinbase and Kraken are the easiest reputable platforms on which to buy Bitcoin with credit cards.To protect yourself during transactions, only use trusted exchanges and use security protocols like 2FA.Credit card purchases can offer some extra protection against fraud compared to other payment methods, but purchase limits can be more restrictiveLooking for the quickest and easiest way to purchase Bitcoin? Buying Bitcoin with a credit card is almost instant on many platforms. Before you start your digital shopping spree, you should take a few minutes to learn how to buy Bitcoin (BTC) with a credit card in the most efficient way. However, if you’re not careful, you could end up damaging your credit score and even getting scammed out of your investments. Below, you will find a step-by-step process for purchasing Bitcoin on a reputable exchange, plus learn how to protect yourself from unnecessary financial distress along the way. Why use a credit card for Bitcoin purchases?Buying Bitcoin via a credit card is almost instant on major exchanges. It can be performed easily on a mobile device or web, allowing buyers and traders to quickly take advantage of market moves.Often, the cryptocurrency exchanges that accept credit cards are regulated and will use high levels of encryption. These exchanges will require Know Your Customer (KYC) and Anti-Money Laundering (AML) checks for security and compliance. Purchasing Bitcoin with a credit card is a beginner-friendly option for new cryptocurrency investors already familiar with using their credit cards for online transactions. There may be some protection from the credit card company if something goes awry.Will buying Bitcoin with a credit card affect my credit score?Every purchasing decision you make with your credit card will have an effect on your credit score, either positive or negative. Crypto is likely to do more harm than good to a credit score. Here’s why:Particularly with large Bitcoin purchases, it will increase your credit utilization ratio. Banks don’t reflect kindly to high credit utilization above 50% of a credit limit.Traditional banks and card issuers classify crypto purchases as cash advances and risky transactions. Payment history still remains the key factor in your credit score. Credit issuers may well frown upon regular Bitcoin purchases.Did you know? Over 85% of retailers across the world accept credit cards, while only 25% of online retailers accept crypto payments. Credit cards are still more widely accepted; however, crypto acceptance is growing quickly. Where to buy Bitcoin (BTC) with a credit cardYou could buy Bitcoin with credit cards on centralized crypto exchanges (CEXs). Well-known global platforms like Coinbase, Kraken and Binance all enable their users to buy Bitcoin with a credit card. Adding to this, you can use instant buy features to purchase Bitcoin with a credit card without depositing fiat currency into your account first. However, the regional availability for CEXs varies from platform to platform. This is usually dependent on local regulations and compliance. So, before picking a platform, you should check if it operates in your location and with your card issuer.What if a credit card transaction is declined?Many traditional banks actively block crypto-related transactions, which means you might find your credit card declined when attempting to purchase Bitcoin or other cryptocurrencies. This is often due to the bank’s policy against facilitating cryptocurrency transactions. However, there is good news: Modern fintech banking alternatives, such as digital banks and crypto-friendly payment platforms, are increasingly supportive of cryptocurrency purchases, offering a smoother transaction experience.Aside from bank restrictions, other reasons for declined crypto transactions can include fraud prevention measures, where the transaction is flagged as suspicious. Additionally, exceeding your credit card’s spending limit or encountering issues with your card’s authorization settings can also lead to a declined transaction.Is there a limit to how much Bitcoin can be bought with a credit card?The purchase limit for Bitcoin varies for each individual and is influenced by two main factors. First, the spending limit on your credit card, which is determined by your bank or card issuer. Second, the crypto exchange you’re using will impose its own purchase limits. For first-time buyers, these limits can be relatively low — often just a few hundred dollars. However, depending on the exchange and your account history, these limits can typically be increased to $5,000 or more per week if needed.You should also be aware of the credit card Bitcoin purchase fees that can include: Exchange fees: Typically 3%–5% for credit card purchases (this is higher than other methods, which can be as low as 0.1%).Card issuer fees: Some treat crypto purchases as cash advances.Foreign transaction fees: It may apply to fiat foreign currency transactions. Did you know? 8%–10% of the adult global population is thought to own cryptocurrency of some form in 2025. A huge jump from 1%–2% in 2018, highlighting the increasing adoption rate.How to buy Bitcoin on CEXs with a credit cardBuying Bitcoin with a credit card is one of the quickest and easiest ways to make a purchase. Once you have a verified exchange account, you can make the transaction almost instantly. Below is a step-by-step guide on how to buy Bitcoin with a Visa or Mastercard on Coinbase. Steps on other exchanges may vary, but the process is generally very similar. Step 1: Create a verified accountFollow the user-friendly sign-up process. Ensure to activate 2-factor authentication (2FA) to double-lock your account. During the sign-up process, you’ll need to verify your identity. Crypto regulations in many countries require exchanges to comply with KYC and AML regulations. To pass these checks, you must upload a valid government ID (passport, driving license or any other acceptable ID card).Step 2: Link your credit cardOnce your account is accessible, use the right-hand side panel to add your payment method. This will give you the option to link a credit card. Add your card details and click “Add Card.” Step 3: Buy BitcoinUsing the right-hand side panel instant buy feature, select Bitcoin and the amount you’d like to purchase. The exchange buy limit will also be shown next to your credit card payment method. This is usually limited to 10,000 British pounds daily on Coinbase. When ready, click “Buy Now.” Confirm the purchase on your banking app. Once approved, the Bitcoin will be added to your exchange account and fiat debited from your credit card. How to protect yourself from fraud when buying Bitcoin with a credit cardThe irreversible nature of Bitcoin means security and fraud prevention should be at the top of your list. It is your responsibility to protect your financial information and crypto from being compromised. To stay safe when buying Bitcoin, you should:Only use a reputable and regulated exchange with a strong security record.Use core security features, including unique passwords and 2FA.Watch out for phishing attempts. Double-check URLs, and don’t click email links or unsolicited messages.Consider moving Bitcoin into a self-custody hardware wallet to protect against exchange hacks and fraud. Is it safe to buy BTC with a credit card?It is generally considered that buying Bitcoin with a credit card is one of the safest methods. This is because it helps to protect your wider financial information, such as direct access to bank accounts. You can also benefit from fraud prevention and spending limits that credit card companies offer. So, if your card details or accounts fall into the wrong hands, you will have higher levels of protection. Plus, there is even some recourse to reverse payments and have fraudulent payments struck off. While it does offer added protection and convenience, purchases will come at a higher cost. Credit card companies typically charge higher fees for crypto transactions, and you may face restrictions on the size of Bitcoin purchases. Many exchanges impose lower purchase limits for credit card transactions, especially for first-time buyers, which could make it less appealing for larger investments. Despite these drawbacks, the extra protection and ease of use make it a convenient option for those new to the crypto space.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Ethereum 'falling knife' warning: Is another 30% crash versus Bitcoin coming?
Ethereum’s native token, Ether (ETH), has dropped to its multi-year lows against Bitcoin (BTC), prompting analysts to predict further declines in the coming weeks.Falling knife warning furthers sell-off risks On March 13, ETH/BTC—a pair that tracks Ether’s strength against Bitcoin—dropped by over 1.50% to reach $0.022, its lowest level since May 2020.ETH’s descent is part of its multi-year downtrend that started when it established a record high of $0.156 in June 2017. Since then, it has plunged by more than 85%, underscoring Ether’s growing weakness against Bitcoin.Meanwhile, on the two-week ETH/BTC chart, the relative strength index (RSI), a momentum indicator used to measure whether an asset is overbought or oversold, has fallen to a record low of 23.32.ETH/BTC two-week price chart. Source: TradingViewTypically, when RSI drops below 30, it signals oversold conditions, potentially leading to a price rebound. However, in Ethereum’s case, RSI has continued to plunge even lower even two months after becoming oversold, suggesting that ETH’s downtrend is still accelerating rather than stabilizing.Crypto analyst Alessandro Ottaviani has described the situation as a “falling knife” scenario—a term used to describe an asset that is experiencing a rapid and steep decline, often discouraging buyers from stepping in too soon. A falling knife implies that attempting to catch the asset at a perceived low could lead to further losses if the downtrend persists.For Ethereum to signal a potential reversal, traders will be watching for RSI stabilization and reclaim of key resistance levels. That ideally begins with a rebound from the 0.022 BTC level, which had limited ETH/BTC’s downside attempts in December 2020, leading to a 300% rally.ETH/BTC weekly price chart. Source: TradingViewShould a rebound happen, the ETH/BTC pair can rally toward its 0.382 Fibonacci retracement line at around 0.038 BTC, aligning with the 50-week exponential moving average (50-week EMA; the red wave).Until then, the technical outlook suggests that ETH/BTC could remain trapped in its falling knife trajectory, with the next potential downside targets at historical support levels inside the 0.020-0.016 BTC range.ETH/BTC two-week price chart. Source: TradingViewThe lowest point of this range is approximately 30% below the current price levels.ETH/BTC fundamentals support a bearish outlookEther’s prospects of declining further against Bitcoin are rooted in factors beyond technical analysis. For instance, Ethereum currently faces strong competition from rival layer-1 blockchains, namely Solana (SOL). Related: ‘The worst thing that happened to Ethereum’ — Bitcoin up 160% since the MergeVanEck noted that Solana’s decentralized exchange volume has surpassed Ethereum’s even during a steep dropoff in memecoin trading activity. Meanwhile, Solana’s volume has risen consistently in recent months, which coincides with a decline in Ethereum’s volumes.Solana vs. Ethereum DEX volumes. Source: VanEckFurthermore, the launch of spot Bitcoin ETFs has fundamentally altered the traditional crypto market cycle that used to benefit Ethereum and other altcoins.Historically, after Bitcoin surged post-halving, capital rotated into altcoins, triggering an “altseason” where ETH and other assets outperformed BTC. However, the $129 billion inflows into Bitcoin ETFs in 2024 have disrupted this cycle, draining liquidity from the broader altcoin market—including Ethereum.Bitcoin Dominance Index weekly price chart. Source: TradingViewAnother factor is Ethereum-specific selling pressure. The recent Bybit hack reportedly led to substantial ETH liquidations, with some of that value laundered via decentralized platforms like Thorchain. This absorbed sell-off may still be rippling through the market, depressing ETH’s relative value.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Bitcoin must secure weekly close above $89K to confirm bottom has passed
Bitcoin must close the week above $89,000 to signal an end to the short-term downtrend, says a crypto analyst.“The only way for Bitcoin to confirm that the bottom is actually in would be to close a weekly back above $89K,” crypto analyst Matthew Hyland said in a video posted to X on March 13. Without $89,000 close, Bitcoin may head toward $69,000Bitcoin (BTC) last traded at $89,000 on March 7, a level Hyland considers crucial since it was the support area where Bitcoin ultimately ended up “breaking down below.” After falling below $89,000, it dropped to $78,523 on March 11 before stabilizing in the low $80,000s.With Bitcoin currently trading at $83,406, a move above $89,000 would liquidate approximately $1.60 billion in short positions, as per CoinGlass data.Bitcoin is down 15.42% over the past month. Source: CoinMarketCapIf Bitcoin fails to close above it, Hyland warned the asset’s price could drop to between $74,000 to $69,000, a level Bitcoin hasn’t seen since November.“It probably is likely at this point that going into the coming weeks or the coming months, Bitcoin will likely test this lower range at some point of support,” he said.“If we do get a weekly close above this area, I think the low is in for Bitcoin, and we are not going down to this area,” he said. Hyland said that it typically leads to further upside when Bitcoin breaks above a resistance level.Bitcoin demand in the US has declinedHowever, demand for Bitcoin in the US has been declining recently due to macroeconomic factors.Bitcoin’s demand fell by 103,000 BTC last week compared to the previous week, “marking its fastest pace of contraction since July 2024,” according to CryptoQuant. Related: Bitcoin high-entry buyers are driving sell pressure, price may ‘floor’ at $70KCryptoQuant said the recent decline in Bitcoin’s demand in the US was due to uncertainty around US inflation rates and US President Donald Trump’s imposed tariffs on Feb. 1. On March 7, Federal Reserve chair Jerome Powell reiterated that he was in no hurry to adjust interest rates.Magazine: Crypto fans are obsessed with longevity and biohacking: Here’s whyThis article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Argentine lawyer requests Interpol red notice for LIBRA creator: Report
Argentine lawyer Gregorio Dalbon has reportedly asked for a global arrest warrant to be issued for Hayden Davis, the co-creator of the LIBRA token that caused a political scandal in the country.Dalbon submitted a request to prosecutor Eduardo Taiano and judge María Servini, who are probing President Javier Milei’s involvement in the memecoin, seeking for an Interpol Red Notice to be issued for Davis, local outlets Página 12 and Perfil reported on March 11.Dalbon said in the filing that there was a “procedural risk” if Davis remained free as he could have access to vast amounts of money that would allow him to either flee the US or go into hiding.“His central role in the creation and promotion of the $LIBRA cryptocurrency, coupled with the international impact of the case, increases the likelihood that he will take steps to evade justice,” the document reportedly stated.Dalbon, who represented former Argentine president Cristina Fernández de Kirchner in her corruption case, asked for Davis’ arrest and for “an Interpol red notice [to] be issued in order to locate and arrest him, with a view to his extradition.”Interpol is the biggest international police organization and can issue Red Notices that request law enforcement agencies around the world to locate and provisionally arrest someone.LIBRA is a token that Milei shared across his social media accounts just minutes after its creation on Feb. 14, which catapulted it to a peak value of over $4 billion. The token’s creators held most of the supply and quickly sold their holdings, which caused the token’s price to crash, with many claiming the token was a pump-and-dump scheme.Hayden Davis (left) poses with Argentine President Javier Milei. Source: Javier MileiDays later, various lawyers reportedly filed fraud charges against Milei in an Argentine criminal court for promoting the token, while other lawyers reported the president for financial crimes to local authorities and to the US Justice Department.Related: Memecoins are likely dead for now, but they’ll be back: CoinGecko Milei has claimed he didn’t “promote” the LIBRA token and insisted he just “spread the word” about it. In a lengthy interview days after LIBRA’s collapse with YouTuber Stephen Findeisen, better known as “Coffeezilla,” Davis defended the token as a failure rather than a scam.Davis and his firm, Kelsier Ventures, were the biggest winners from the LIBRA token launch. He claimed to Findeisen that he netted around $100 million but said he didn’t own the tokens and wouldn’t be selling them.It was later reported that he sent a text message bragging about being able to pay Milei’s sister, Karina Milei, to have the president share the memecoin’s details on X. Davis later said he had no record of this on his phone and denied making payments to the Mileis.Magazine: Influencers shilling memecoin scams face severe legal consequences