Argentine President Javier Milei faces impeachment calls after promoting a cryptocurrency that crashed within hours. The incident has shaken confidence in the crypto-friendly leader and raised questions about government officials’ involvement in digital asset promotions.
The Libra Token Scandal
President Milei endorsed the Libra token through his Twitter account with 3.8 million followers. The token’s price surged to $5 before plummeting to under $1. This rapid collapse caused millions in losses for investors.
Red Flags and Market Analysis
Several concerning factors emerged around the Libra token launch:
- The project’s website was created just one day before launch
- Token minting occurred minutes before Milei’s promotion
- Early investors (‘whales’) bought tokens at near-zero prices
- Some accounts turned $4 million into $87 million within hours
Political Fallout
The scandal has sparked a political crisis in Argentina. Opposition lawmakers have called for Milei’s impeachment. The president’s team later admitted the promotion was ‘a mistake.’ Security Minister Patricia Bullrich defended Milei, citing freedom of expression.
Market Implications
This incident could have broader implications for crypto markets:
- Increased scrutiny of government officials promoting cryptocurrencies
- Potential regulatory crackdown on token launches in Argentina
- Damaged credibility for crypto-friendly political figures
- Higher investor skepticism toward new token launches
Lessons for Investors
The Libra token collapse offers important lessons:
- Be wary of tokens promoted by public figures
- Research project fundamentals before investing
- Watch for signs of potential ‘rug pulls’
- Consider the timing of token launches and promotions
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Tags: #CryptoScam #Argentina #TokenCrash #CryptoRegulation #DeFi
Source: Bitcoinist