Argentina’s President Under Fire for Promoting Cryptocurrency
Controversy Surrounds Presidential Endorsement of $LIBRA
BUENOS AIRES: Argentina’s President, Javier Milei, is facing intense criticism after promoting a cryptocurrency, $LIBRA, which experienced a meteoric rise in value before plummeting, sparking accusations of fraud and calls for an investigation.
The Post and the Backlash
According to news outlets, Milei shared a message on social media platform X on Friday evening, praising a "private project" aimed at "stimulating the growth of the Argentine economy, by financing small businesses and Argentine entrepreneurs." The post read, "The world wants to invest in Argentina. $LIBRA," naming the cryptocurrency along with a website for the project.
A "Rug Pull" or Scam?
Hours later, Milei deleted the message, explaining, "I did not know the details of the project and after learning about it, I decided not to continue spreading it." He also stated that he had "obviously no connection" with the "alleged private company." However, industry observers have called the operation a "rug pull," a scam where developers unveil a crypto token, attract investors, then quickly cash out.
Market Activity and Losses
In the time the cryptocurrency was live, multiple large holders liquidated millions of USD worth of $LIBRA, with gains of over $4 million or more as the coin’s market cap rose to $4.6 billion. After reaching its peak, the coin’s value fell in a straight line, resulting in significant losses for many investors.
Reactions and Accusations
Javier Smaldone, a computer scientist and digital influencer, labeled the operation a "global scam." "So far, it has been discovered that the profit made is around $107 million," he said. "Maybe more." Former President and opposition figure Cristina Kirchner also weighed in, calling Milei a "crypto-scammer."
Calls for an Investigation
Maximiliano Ferraro, of the center-right Civic Coalition, has called for Parliament to create a "special inquiry commission" to "clarify the facts and determine responsibility." Meanwhile, Francisco Onato, identified as Milei’s personal lawyer, argued that the president’s behavior "does not constitute any crime, due to the lack of intention."
Conclusion
The controversy surrounding $LIBRA and President Milei’s involvement has sparked widespread concern and outrage, with many calling for an investigation into the matter. As the situation continues to unfold, it remains to be seen whether the President will face further scrutiny and, potentially, legal action.
FAQs
- What is $LIBRA?
- $LIBRA is a cryptocurrency that was promoted by Argentine President Javier Milei.
- What happened to the value of $LIBRA?
- The value of $LIBRA skyrocketed, then plummeted, resulting in significant losses for many investors.
- Is President Milei connected to the creators of $LIBRA?
- According to the President, he has "obviously no connection" with the "alleged private company" behind $LIBRA.
- What is the reaction to this controversy?
- The controversy has sparked widespread criticism, with many calling for an investigation into the matter.