President Milei's digital currency is crumbling
On a Friday evening, Argentine President Javier Milei enthusiastically endorsed the cryptocurrency $LIBRA on his online platform, X. Experts swiftly identified this as a Ponzi scheme, encouraging small businesses and entrepreneurs in Argentina. This praised digital currency soared to unprecedented heights before dramatically nose-diving not long after. Now, an investigation is underway.
In the wake of the currency's downfall, Milei ordered an investigation into the matter. He affirmed that he was not privy to the project's intricacies and had never had a connection to it. Prior to this, the Argentine President had championed $LIBRA on X, which unfolded to be a total sham.
Upon his Friday night endorsement, Milei boasted of $LIBRA's goal to "stimulate Argentine economic growth by providing financial resources to small businesses and Argentine entrepreneurs." He later deleted the post, stating that he had changed his mind after researching the project further. Hours later, $LIBRA reached its apex - and then plummeted.
According to computer scientist and expert Javier Smaldone, $LIBRA was a classic example of a speculative investment scam, known as a "rug pull." Smaldone explained that numerous investors were lured in by this new cryptocurrency. Once its value had substantially increased, large shareholders cashed out, sending the currency crashing. The total profit made was reportedly around $107 million.
The opposition has relentlessly attacked Milei, labeling him a "crypto fraudster." Former President Cristina Kirchner voiced her criticism on X, while Senator Martín Lousteau of the UCR party slammed Milei for promoting a second disreputable cryptocurrency.
Source: Argentine Media, Expert Insights, and Enrichment Data
Milei himself initiated an investigation into the matter, assigning the Anti-Corruption Office (OA) to probe whether any government officials had engaged in improper activities. Despite his initial involvement in cryptocurrency scandals, such as the CoinX World crypto scandal in 2022, Milei was not connected to the $LIBRA project.
A special unit of the OA will also scrutinize the origins of $LIBRA and all related companies and individuals. Reports indicate that the crypto market is plagued with scams like this, with insiders exploiting investors for their own gain.
The $LIBRA collapse has been branded as one of the most significant political rug pulls in the history of cryptocurrencies, shedding light on the insider manipulation, lack of transparency, and potential risks associated with cryptocurrency investments.
Despite initially endorsing the $LIBRA cryptocurrency as a solution to stimulate Argentine economic growth, Milei later admitted that he was not aware of its Ponzi-like nature. The crash of $LIBRA, which reached unprecedented heights after his endorsement and later plummeted, led to accusations of Milei being involved in a crypto scam. However, an investigation revealed that he was not connected to the project, but large shareholders cashed out once its value increased, lead to a crash, resulting in around $107 million in profit.
