Argentine President Milei facing impeachment calls after promoting cryptocurrency whose value has tanked

Argentine President’s Cryptocurrency Promotion Sparks Controversy

Argentine President Javier Milei is facing mounting criticism and calls for impeachment after promoting a new cryptocurrency on his social media platform.On February 14th, Milei shared a link to a site where users could purchase a cryptocurrency called $LIBRA, associated wiht a project named Project Libertad. The project’s website outlined plans to use funds from the coin launch to support Argentine businesses.

Milei’s post suggested that the coin and the project would boost Argentina’s economy and aid small businesses. However, the promotion sparked a chain of events that quickly turned sour.Within an hour of its launch, the coin’s price, which initially hovered around $0.22, surged to over $5. But buyers soon noticed early purchasers aggressively selling their holdings, causing the price to plummet by approximately 70%.

Data from crypto analytics firm LookOnChain revealed that eight digital wallets linked to early trading of the coin cashed out a staggering $107 million. crypto news site ICOBench reported that 60 individuals lost over $500,000 each,with 24 traders suffering losses exceeding $1 million. By today, LIBRA coin’s value stands at around $0.30 according to CoinMarketCap.com.

The swift rise and abrupt fall of $LIBRA have fueled accusations of a “rug pull” – a tactic employed by developers to deceive investors by generating initial hype and then abandoning the project, leaving later investors with meaningful losses.

Representatives from Project Libertad did not respond to requests for comment. This incident bears resemblance to former president Donald trump’s promotion of a cryptocurrency, TRUMP, shortly before taking office. That coin, which soared to nearly $78 immediately after its launch, has since experienced an 80% decline, currently trading at around $16. Notably,the TRUMP project offered greater clarity regarding its ownership structure.

Hayden Davis, an American involved in the $LIBRA project, denied allegations of wrongdoing in a post on X. He accused Milei himself of backing out of the project and claimed that the sudden loss of confidence stemming from Milei’s team deleting their promotional posts triggered a panic sell-off.

Milei’s official account later released a statement on X, outlining the events and confirming that the president had requested Argentina’s anti-corruption investigator to probe the matter, including his own involvement. In a television interview on Monday, Milei acknowledged that his decision to promote the coin had likely been a mistake.

“I’m a techno-optimist, and this was proposed to me as an instrument to help fund Argentine projects,” Milei admitted to the Financial Times. “It’s true that in trying to help out those Argentines,I took a slap in the face.”

Milei’s office further clarified that while he had met twice with project representatives, he was not involved in its development. Milei commented,”The most engaging lesson is that … I need to put up more filters,it can’t be so easy for people to reach me.”

Milei’s proclivity for unconventional economic policies mirrors his close ties with figures like Elon Musk, with whom he shares a strong friendship.Recently, Milei established a Ministry of Deregulation and State Change in argentina, mirroring Musk’s involvement in creating the Department of Government Efficiency.

Milei assumed office in December 2023, vowing to address Argentina’s persistent inflation issues. While some progress has been made, the nation’s poverty rate has also unfortunately risen.

This incident serves as a stark reminder of the risks associated with celebrity endorsements in the cryptocurrency market, emphasizing the importance of thorough due diligence and self-reliant research before investing.

Given President Milei’s influence, do you believe endorsements from political figures should be more heavily scrutinized in the cryptocurrency space?

Crypto Controversy: AConversation with economist Dr. Maria الطالعة on President Milei’s Involvement in LIBRA Coin Promotion

Background

Argentine President Javier Milei recently sparked a firestorm by promoting LIBRA Coin, propagating a wave of controversy due to the cryptocurrency’s subsequent price fluctuations and accusations of a “rug pull.” Archyde News sat down with economist Dr. Maria طالعة, an expert in emerging technologies and global markets, to discuss Milei’s role in LIBRA and its impact on Argentina’s crypto landscape.

Interview with Dr. Maria طالعة

Dr. طالعة, thank you for joining us today to discuss the recent LIBRA Coin controversy. Let’s start with the basics. What is LIBRA Coin, and how was it connected to President Milei?

Dr. طالعة: LIBRA Coin is a cryptocurrency that gained brief infamy when Argentine President Javier Milei promoted it on his social media platforms.Unfortunately, the project was mired in controversy, with users accusing it of being a ‘rug pull’ – a scam where organizers abandon a project after investors have bought in.

Given President Milei’s involvement, how has this event impacted Argentina’s burgeoning crypto scene?

Dr. طالعة: The impact has been significant, albeit mixed.On one hand, the controversy has forced the government to take a harder stance on regulating cryptocurrencies. On the other, public confidence in crypto projects connected to the government has taken a hit.

Milei admitted that promoting the coin was a mistake. How has his response been received by the Argentine public and the crypto community?

Dr. طالعة: The response has been critical, yet many understand that even leaders make mistakes.Some praise his honesty, while others, especially those who suffered losses, demand further action. The crypto community, however, is more skeptical, urging greater caution and due diligence from investors.

Dr. طالعة, you’veirmed the need for better crypto regulation in Argentina. What steps could the government take to protect investors and foster a healthier crypto habitat?

Dr. طالعة: Increased clarity, strict No Your Customer (KYC) and Anti-Money Laundering (AML) procedures, and enhanced penalties for scammers would be a good start. Additionally, promoting crypto literacy among the public and encouraging collaboration between the blockchain industry and regulators could help Argentina become a global crypto hub –-but를 safely.

Lastly, do you have a thought-provoking question for our readers regarding this incident?

Dr. طالعة: Should we hold celebrities accountable when their endorsements lead to such significant financial losses, and if so, to what extent?