Argentina’s President Javier Milei, known for his pro-Bitcoin stance, is facing impeachment calls following a controversial cryptocurrency debacle. The fallout centers around a new token, Libra, which he promoted, leading to significant financial losses for investors.
The Libra Launch and its Rapid Collapse
Milei enthusiastically promoted Libra on social media, claiming it would boost the Argentine economy. His tweet linked to the token’s website, which even featured his campaign slogan, “Long Live Freedom.” The token initially skyrocketed to $5, only to plummet to less than $1 within hours, wiping out millions of dollars in value.
This dramatic price swing sparked immediate accusations of a scam, with opposition politicians slamming Milei for endorsing what they called a fraudulent project. Milei initially denied any wrongdoing, then later deleted his promotional tweet and claimed he was unaware of the project’s details. He subsequently blamed his political opponents, accusing them of exploiting the situation. Even Milei’s team admitted the tweet was a “mistake” in a CNN interview.
A “Rug Pull” or Something Worse?
The Libra launch bears a striking resemblance to a “rug pull,” a common cryptocurrency scam where the price is artificially inflated before insiders sell off their holdings, leaving investors with worthless tokens. Some analysts even compared it to a Ponzi scheme. Experts pointed out several red flags, including the token’s website being created just a day before launch and the incredibly fast minting of tokens before Milei’s promotion. Reports surfaced of investors making massive profits by buying in early and selling at the peak.
Political Fallout and Divided Opinions
While the opposition seized on the scandal to call for impeachment, Milei received some support. Security Minister Patricia Bullrich defended his right to free speech, comparing his tweet to a simple endorsement rather than active lobbying. The situation remains highly volatile, with the political and financial ramifications still unfolding in Argentina.
