President Javier Milei endorsed the cryptocurrency $LIBRA, which rapidly lost value, leading to accusations of fraud. The initiative, designed to promote small business financing in Argentina, was criticized by experts and political opponents, expressing concerns over its legitimacy. Despite Milei’s claims of private funding, skepticism remains about the project’s authenticity and potential implications for his presidency.
On Friday evening, President Javier Milei ignited a significant controversy by endorsing a cryptocurrency token, $LIBRA, which plummeted in value shortly after his recommendation. Experts and political commentators suspect his involvement could be linked to a fraudulent scheme, as the token rapidly lost its worth, leading critics to label it a potential scam.
At approximately 7 p.m. local time, Milei promoted the $LIBRA token via social media, presenting it as a unique investment opportunity aimed at supporting small businesses in Argentina. Initially, the token’s market value soared to $6 billion, making it comparable to major Argentine banks, but it quickly nosedived from around $4,978 to $0.99159, wreaking havoc in the crypto sector.
Milei later asserted to Bloomberg Linea that the $LIBRA project is genuine and based on private financial support. He claimed, “The project is a private initiative that aims to help Argentine companies and projects,” distancing himself from allegations of direct involvement in the scheme, which he argued is designed to enable local entrepreneurs to secure funding.
Despite Milei’s assurances, public skepticism surged, prompting critics to speculate about potential hacking of his social media account. However, La Libertad Avanza deputy Lilia Lemoine confirmed the authenticity of the post, fueling further scrutiny about the $LIBRA initiative and its implications for the Argentine economy.
Key figures in Milei’s campaign expressed discontent over the situation. Fernando Cerimedo, a strategist for his digital media team, remarked online that those responsible for this promotion should find refuge due to the backlash. Online criticisms suggested legal repercussions for Milei, with economist Carlos Maslatón explicitly accusing him of engaging in crypto fraud.
Cybersecurity analysts raised alarms regarding the legitimacy of the $LIBRA token, querying if Milei’s account had been compromised. Prominent voices in the crypto community criticized the initiative, with tweets warning Milei to not promote low-quality tokens, while others accused him of orchestrating a blatant global scam.
Milei’s past endorsements of cryptocurrency initiatives have also raised concerns. Opposition leader Martín Lousteau reminded the public that this is not the first instance where Milei has been linked to crypto assets purportedly designed as scams, referencing his promotion of the CoinX platform in 2021, which is under investigation for fraudulent activities.
The controversy surrounding President Javier Milei’s endorsement of the $LIBRA cryptocurrency has sparked widespread criticism and accusations of fraud. The token, which quickly lost its value, has raised serious concerns among economists and political opponents, with allegations suggesting potential implications for Milei’s credibility and even legal ramifications. As the situation develops, further clarity about Milei’s role and the legitimacy of the $LIBRA initiative is necessary.
Original Source: batimes.com.ar
