President Javier Milei faced backlash for promoting the ‘$LIBRA’ cryptocurrency token, which rapidly lost value following his endorsement. Critics questioned the legitimacy of the token, suggesting it may represent a scam, while Milei insisted it supports Argentine businesses. Concerns about transparency and concentration of token holdings have led to calls for legal action and further scrutiny of Milei’s past involvement in similar initiatives.
On Friday evening, President Javier Milei prompted considerable backlash after advising his supporters to invest in a cryptocurrency token named ‘$LIBRA.’ Within hours of his endorsement, this token’s value plummeted, drawing skepticism from crypto analysts who suggested his involvement in or exploitation of a potential scam.
Milei’s enthusiastic promotion of ‘$LIBRA’ on social media attracted attention by presenting it as an investment opportunity aimed at stimulating financing for small businesses and entrepreneurs in Argentina. Following his statement, the token’s valuation skyrocketed to $6 billion, paralleling a significant Argentine bank, before rapidly collapsing to below $1.
Critics from various sectors, including economic specialists and opposing political figures, quickly condemned Milei’s actions, with some alleging it was a Ponzi scheme or a scam. Milei later dismissed these allegations, asserting the project’s legitimacy and its intention to foster private investment for Argentine entrepreneurship.
Despite his defense, doubt circulated regarding the integrity of ‘$LIBRA,’ especially as experts noted that a significant majority of the token was held by a small number of accounts. This raised suspicions about price manipulation and the legitimacy of the investment opportunity, leading some to call for legal action against Milei.
In the aftermath, Milei’s team conceded that his promotion was indeed genuine, countering theories of hacking. The turbulent response from both crypto enthusiasts and skeptics highlighted the risks associated with such ventures, particularly given Milei’s past association with alleged cryptocurrency frauds, where he had earlier advocated for the CoinX platform.
As the situation develops, the Presidential office has refrained from issuing a detailed explanation concerning Milei’s role in the ‘$LIBRA’ affair, leaving many critical questions regarding transparency and accountability unanswered. The project purports to operate on the Solana blockchain; however, inadequate technical details regarding its management and fund distribution have raised further concerns among analysts.
In summary, President Javier Milei faced severe criticism for endorsing the ‘$LIBRA’ cryptocurrency token, which crashed in value shortly after his promotion. Despite assurances of its legitimacy and aims to support small businesses, the token raised alarm due to substantial holdings concentrated among few investors. The incident reflects ongoing issues within Argentina’s crypto landscape and Milei’s controversial history with cryptocurrency initiatives. The lack of transparency and accountability regarding this project has left many in doubt about its true nature and intentions.
Original Source: batimes.com.ar
