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Argentine President Javier Milei has come under fire after promoting the cryptocurrency $LIBRA on his social media account, an endorsement that has since sparked controversy and financial losses for some investors. In a now-deleted post from Feb. 14, Milei encouraged his followers to explore Project Libertad, a new initiative aimed at supporting Argentine businesses through the launch of the coin. Initially, $LIBRA saw a dramatic surge in value, jumping from $0.22 to over $5, before plummeting by 70% within an hour as early buyers sold off large holdings. The volatility of the coin’s launch has led to accusations of a potential “rug pull,” with some investors losing significant sums.
Crypto analytics firms have reported that a select number of wallets cashed out substantial profits, raising questions about the fairness of the project’s launch. Hayden Davis, an American involved in the initiative, pushed back against allegations of wrongdoing, instead pointing to Milei’s decision to remove his endorsement as a key factor in the token’s sharp decline. Meanwhile, Milei has requested Argentina’s anti-corruption authorities to investigate the matter, including his own role. In a televised interview, he acknowledged that his enthusiasm for technological innovation may have clouded his judgment, admitting he should exercise greater caution when lending support to such projects.
Politically, the incident has given ammunition to Milei’s critics, with opposition groups calling for further scrutiny and, in some cases, even impeachment. However, analysts suggest that securing the votes necessary for impeachment remains unlikely. Despite the backlash, Milei continues to push his broader economic reforms aimed at combating Argentina’s chronic inflation, though challenges persist, including a rising poverty rate. His close ties with figures like Donald Trump and Elon Musk have also drawn attention, as he seeks to position himself as a leader of economic deregulation and technological progress. Whether this controversy will have lasting political consequences for Milei remains to be seen.
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(Source: Semafor | BBC)
