Argentine President Javier Milei has found himself at the center of a political and financial storm after promoting an obscure cryptocurrency, $LIBRA, which rapidly surged in value before crashing. His endorsement, made through a now-deleted social media post, has drawn criticism from political opponents and investors alike, with accusations of irresponsible promotion and potential fraud.
From Promotion to Plunge
On Friday night, Milei posted about $LIBRA, claiming it would boost Argentina’s economy by supporting small businesses and attracting global investment. The endorsement led to an immediate spike in the token’s value. However, a community note on X (formerly Twitter) soon warned users of potential fraud, flagging the token’s behavior as similar to a rug pull—a scam where developers abandon a project after attracting investment.
La participación de Milei en un delito de estafa cripto es de enorme gravedad. Es un escándalo sin precedentes.
Nuestro bloque de diputados Nacionales decidió avanzar en la presentación de un pedido de Juicio Político contra el Presidente de la Nación.
— Diputados UP (@Diputados_UxP) February 15, 2025
As panic spread, $LIBRA’s value plummeted, causing heavy losses for investors. By midnight, Milei had deleted his post, stating that he had distanced himself after learning more about the project.
Political Fallout and Investigation
The backlash was swift. Critics accused Milei of encouraging risky investments without proper due diligence. Opposition leaders condemned the incident, with former President Cristina Fernández de Kirchner alleging that insiders made millions while ordinary investors lost money. Calls for a congressional investigation have intensified, with some lawmakers pushing for a formal inquiry into whether government officials benefited from the promotion.
In response, Milei’s office framed the post as a routine promotion of entrepreneurship, claiming he had no personal ties to the project. The president announced an official investigation to determine whether any legal violations occurred.
Echoes of Trump’s Crypto Move
Milei’s crypto foray mirrors that of former U.S. President Donald Trump, who recently launched his own memecoin, $TRUMP. That token also saw an initial surge before experiencing a sharp decline. Beyond crypto, Milei has made other controversial moves, including withdrawing Argentina from the World Health Organization and considering an exit from the Paris Climate Accord.
Investor Reactions and Lessons Learned
Many investors who bought into $LIBRA suffered significant losses. Agustín Pantano, a 28-year-old lawyer and Milei supporter, invested $150, only to see 90% of it wiped out overnight. He acknowledged spotting red flags but still took the risk based on Milei’s endorsement.
This incident underscores the volatile nature of crypto investments, especially those driven by political figures or sudden hype. It also raises questions about regulatory oversight and the ethics of political leaders promoting financial assets.
Javier Milei’s involvement with $LIBRA has sparked serious concerns about the intersection of politics and crypto. While the president insists he had no role in the token’s creation, the fallout highlights the risks of unregulated digital assets and the potential for financial manipulation. As Argentina navigates its economic challenges, this controversy serves as a stark reminder of the dangers of speculative investments—especially when political leaders are involved.
