Javier Milei, the president of Argentina, has sparked a political uproar by endorsing an obscure cryptocurrency token that quickly crashed after its value skyrocketed.
Mr. Milei said that the currency, $LIBRA, will boost the economy and support the expansion of small enterprises in a social media post on Friday night. Although the token first benefited from the increased attention, the enormous profits were rapidly undone as suspicion that the currency was a hoax spread.
Five hours later, Mr. Milei removed the post from his own account and made an effort to disassociate himself from the endeavor. He stated on X, “I decided not to continue disseminating it after informing myself that I was unfamiliar with the project’s details.”
His first support of the coin was characterized as a standard commercial promotion in another post on X from the official presidential account on Saturday night. Additionally, it stated that the president had launched inquiries to see whether any members of his administration, including himself, had engaged in improper behavior and whether any individuals connected to the currency had violated the law.
For allegedly encouraging people to make a dangerous investment, Mr. Milei has drawn criticism. Comparisons to President Trump, who introduced the memecoin $Trump last month, were also sparked by his first tweet. After a brief period of rise, that token plummeted.
His crypto venture was dubbed “a scandal without precedent” by a center-left alliance that opposes Mr. Milei’s libertarian administration. A other political bloc declared that it wanted to establish a commission.
Mr. Milei’s principal political rival, former President Cristina Fernández de Kirchner, said that “many made fortunes due to privileged information,” while thousands of people who had put their faith in him lost millions of dollars overall.
The promotion of $LIBRA by Mr. Milei was only the most recent in a string of actions he has taken with Mr. Trump. Earlier this month, Mr. Milei pulled Argentina out of the World Health Organization, and according to his staff, the government is considering pulling out of the Paris Climate Accord.
Mr. Milei marketed the currency as an investment vehicle that would benefit the nation.
$LIBRA, a moniker that mirrors his political party, La Libertad Avanza, would “incentivize the growth of the Argentine economy, funding small companies and Argentine ventures,” he stated in his first post on X.
“Argentina is becoming more liberal! “The world wants to invest in Argentina,” Mr. Milei continued.
Shortly thereafter, a community notice on X cautioned users about using $LIBRA. Because of actions that were “consistent with a rug pull,” it advised individuals to “verify before interacting with the project.” That phrase describes fraudulent offers made by developers who produce a cryptocurrency token, pull in investors, and then abruptly vanish, taking all of their money.
