Argentina’s President, Javier Milei, is under scrutiny after a cryptocurrency he endorsed on social media crashed, leading to significant losses for investors. On Friday night, Milei shared a tweet promoting a little-known coin, $LIBRA, claiming it would help stimulate the economy and support small businesses in Argentina.
The coin’s value skyrocketed almost instantly, reaching a market cap of $4.4 billion. However, within hours, the cryptocurrency’s value plummeted to under $1, causing heavy financial losses. Many investors, including, saw their investments dwindle by in just a few hours.
Milei quickly deleted the tweet and later explained that he was unaware of the details surrounding the coin before promoting it. He stated that once he became aware of the situation, he removed the post and distanced himself from the project.
The incident raised concerns about a potential “rug pull” scam, where developers artificially inflate the value of a coin before selling off their holdings, leaving investors with worthless tokens. Despite the crash, the coin still holds a market value of $250 million.
According to Reuters, opposition lawmakers in Argentina have suggested that Milei could face an impeachment trial in Congress over the incident, while the country’s fintech chamber acknowledged the possibility of foul play.
The case has drawn attention not only to Milei’s involvement but also to the broader risks of cryptocurrency investments, stressing how quickly the market can turn from hype to disaster.
