Argentina’s President, Javier Milei, has come under fire after promoting a little-known cryptocurrency, $LIBRA, which surged in value following his endorsement—only to collapse soon after. The libertarian leader, known for his radical economic policies, initially praised the token as a tool for economic growth but later deleted his post and distanced himself from the project.
Sudden Endorsement and Swift Deletion
On Friday night, Milei posted on social media, hailing $LIBRA as a means to stimulate Argentina’s economy and support small businesses. The endorsement led to a rapid spike in the token’s value as investors rushed in. However, doubts emerged when a community note on X (formerly Twitter) flagged the project as a potential scam, warning of behavior similar to a rug pull—a fraudulent scheme where developers abandon a project after attracting investments.
Just five hours later, Milei deleted his post and admitted he was unaware of the project’s details. “After informing myself, I decided not to continue disseminating it,” he explained.
Investigation and Political Fallout
In a follow-up statement, Milei’s office framed his endorsement as routine, comparing it to his daily support for Argentine entrepreneurs. However, the backlash was swift. Critics accused him of recklessly promoting a high-risk investment, while opposition leaders labeled the incident a “scandal without precedent.”
A congressional commission is being proposed to investigate the matter, with former President Cristina Fernández de Kirchner claiming that “thousands who trusted him lost millions, while some profited from privileged information.”
Crypto Chaos and Global Parallels
The incident echoes a similar controversy surrounding former U.S. President Donald Trump, who recently launched his own memecoin, $Trump. Like $LIBRA, Trump’s token initially soared but later plummeted, raising concerns about the influence of political figures on speculative markets.
Milei’s alignment with Trump extends beyond crypto. His administration recently withdrew Argentina from the World Health Organization and is reviewing the country’s participation in the Paris climate accord.
Investors Left Counting Losses
Among those affected was Agustín Pantano, a 28-year-old lawyer and Milei supporter. He invested $150 in $LIBRA, anticipating quick profits. By early morning, his holdings had lost 90% of their value. “There were several red flags, and that’s why I only invested a little,” he admitted.
While Milei denies any personal ties to the token, the damage is done. The scandal has raised questions about the responsibilities of public figures in financial endorsements and the risks of political figures influencing volatile crypto markets.
Leave a Reply