Argentine Leader Javier Milei Faces Potential Impeachment over Support for Cryptocurrency Manipulation Scheme
Argentina's president, Javier Milei, took an anarcho-capitalist leap by backing a crypto token named $LIBRA, promising to bolster his nation's economy. Yet, less than an hour after his tweet, $LIBRA skyrocketed by 2,000%, reaching a whopping market cap of nearly $4.5 billion, only to swiftly plummet, leaving investors holding the bag. Oops! According to Reuters, Milei's opponents are now contemplating impeachment due to this debacle.
Late on a Friday night, Milei recommended $LIBRA to his nearly four million followers as a "private project devoted to encouraging Argentine economic growth," claiming it would fund small businesses and ventures. Notably, the project's website was launched on the day of this endorsement. With Milei's blessing, $LIBRA's value soared, only to collapse almost five hours later, wiping out roughly $4.5 billion of its market cap. While Milei tried to distance himself from the situation, deleting his initial tweet and disavowing knowledge of the project's specifics, the damage had already been done.
The price collapse wasn't the only consequence of Milei's endorsement. BubbleMaps, an analysis site, revealed that 82% of $LIBRA's tokens were controlled by a single cluster, suggesting that the creators and their network cashed out when retail backers started to pour in. This seemingly coordinated move proved disastrous for investors, and The Kobeissi Letter coined it "one of the fastest and largest destructions of wealth in retail trading history."
As these losses mounted, Milei's opposition saw an opportunity to criticize his handling of the situation. Leandro Santoro, an opposition lawmaker, called for impeachment, claiming the incident brought shame to Argentina internationally and demanding congressional removal. Milei's popularity has waned since his 2023 inauguration, facing criticism over his handling of Argentina's staggering inflation and his plunge into poverty for more than half of Argentina's population. His controversial behaviors, including frequent protests, haven't endeared him to Argentinians either.
This seeming reluctance to conduct due diligence and the widespread financial losses are just another chapter in the Donald Trump playbook that Milei appears to be following.
- Milei's tech-savvy approach to boost the Argentine economy extended to his advocacy for cryptocurrency, backing the $LIBRA token.
- The future of Argentina's tech sector and Milei's political standing could be influenced by the consequences of his involvement with the controversial cryptocurrency venture.
- With Argentina's political landscape split on the issue, some critics argue that Milei's support for cryptocurrency, specifically $LIBRA, may be a crucial factor in any potential impeachment proceedings.
- Amidst the fallout, calls for tech innovation in Argentina's political and economic spheres have grown louder, highlighting the potential impact of the cryptocurrency debacle on the nation's venture capital landscape.
