Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche


Is Libero Financial for Real?

Libero Financial (LIBERO) is a cryptocurrency that sounds too good to be real.

To explain, they build Libero Financial with the Libero Autostaking Protocol. They claim the Libero Auto Staking Protocol (LAP) can deliver a fixed Annual Percentage Yield (APY) of 158,893.59%. Note: I think that APY is impossible.

Shamelessly, the Libero website claims holders can receive a 132% return on Libero in 14 days. I do not believe that. After 15 days, they claim Libero users can cash out 1% of their Libero holdings each day. After 15 days, they claim Libero will grow by 2.04%.

After 37 days, they claim Libero offers a 34% return on investment (ROI). After 70 days, they claim Libero offers a 236% return on investment. Oh, and after 100 days they claim Libero offers a 323% ROI.

The Libero Financial (LIBERO) is a token they claim will compound automatically with a treasury backed currency and intrinsic value. Yes, that is possible, but I think the APY they promise is unrealistic.

Disgustingly, Libero Financial’s claims are paying off. Coinbase estimates Libero Financial’s Coin Price grew by 132.34% in the seven days ending on 14 February 2022.

DeFi 3.0 Multichain Farming

The designers claim Libero automatically stakes and compounds interest in a digital wallet. They also claim Libero offers rewards every 30 minutes or 48 times a day.

Additionally, they claim Libero burns 4% of its coin supply every week to reduce the risk of inflation. However, they admit Libero has 13% slippage on PancakeSwap.

Libero claims to offer a Risk Free Value Fund. This is impossible because nothing is Risk free. They also offer DeFi 3.0 Multichain farming. To explain, they bridge the Risk Free Value Fund to other Ethereum Virtual Machine (EVM) compatible blockchains, including Solana, Avalanche, Fantom, Metis, and Polygon hoping to generate higher returns. They claim DeFi 3.0 multichain farming can deliver an APY of 50% or higher. I’m skeptical.

Is Libero a Scam?

Hence, I think Libero resembles a Ponzi scheme. To elaborate, the Libero builders hope enough people will buy the coins so they can deliver high returns to investors. If people stop buying Libero, it will crash.

I cannot believe this. Instead, I think Libero sounds too good to be true. I don’t know if Libero is a scam, but sounds like a scam. I have to wonder if Libero is a Ponzi Scheme.

To explain in a Ponzi Scheme, a fraudster uses money from new investors to pay existing. Hence, the scheme delivers a high return until the fraudster runs out of suckers. The name Ponzi Scheme comes from Charles Ponzi, an Italian nobleman who fleeced Boston residents with a pyramid scheme using postage stamps in the 1920s.

Investopedia lists some characteristics of a Ponzi scheme as:

  • Promises of high returns with little or no risk.
  • Constant returns
  • Secretive and complex strategies.

The Libero Financial developers promise high returns with no risks. Hence, it sounds like a Ponzi to me.

Another sign of a Ponzi scam is the use of vague claims and many catchphrases by promoters. Note the Libero Financial promoters use terms like DeFi 3.0. They also promise Financial Freedom, which I consider a meaningless but appealing phrase similar to a political campaign slogan.

Note: they admit Libero has 13% slippage on PancakeSwap. Hence, the builders admit Libero loses value, that is not a good sign.

Libero Financial Tokenomics

Libero Financial (LIBERO) is a BEP20 token with an elastic supply that rewards holders using a positive release formula. A BEP20 token is a Binance Smart Chain token that is compatible with ERC20 (Ethereum Request for Comment) tokens.

Libero Financial features include an Automatic Liquidity Protocol (LP). They claim the Libero LP collects 5% on all LIBERO sold and returns it to liquidity to ensure Libero’s collateral value.

They also have a treasury. Libero puts 3% of all purchases and 5% of sales into the treasury. In addition, the Risk Free Value (RFV) Buyback Fund buys back 5% of the Libero sales and collects 10% of the sales fees to sustain the positive purchase scheme.

What Value Does Libero Financial Have?

Mr. Market assigns Libero Financial (LIBERO) some value. For example, CoinMarketCap gave Libero a Coin Price of 1.513₵ on 16 February 2022.

Similarly, Coin Market Cap estimates Libero a Market Capitalization of $75.646 million, a Fully Diluted Market Cap of $75.646 million, and a 24-Hour Market Volume of $4.745 million. They base those numbers on a Self Reported Circulating Supply of five billion LIBERO. There was Maximum Supply of five billion Libero and a Total Supply of five billion Libero. Libero was CoinMarketCap’s 2,932nd largest cryptocurrency on 16 February 2022.

In comparison, CoinBase gave Libero Financial a Coin Price of 1.52₵  and a 24-Hour Market Volume of $4.8million on 16 February 2022. I think Libero is unstable because CoinBase gives it an all-time high Coin Price of 2₵.

I advise speculators to stay far away from Libero Financial, because I think it resembles a Ponzi Scheme. I predict this cryptocurrency could collapse and it will not surprise me if regulators or prosecutors target Libero Financial and the people behind it. In the final analysis, Libero Financial is too good to be true.