Argentina’s President, Javier Milei, is below scrutiny after a cryptocurrency he endorsed on social media crashed, resulting in important losses for traders. On Friday evening, Milei shared a tweet selling a little-known coin, $LIBRA, claiming it will assist stimulate the financial system and help small companies in Argentina.
The coin’s worth skyrocketed nearly immediately, reaching a market cap of $4.4 billion. Nevertheless, inside hours, the cryptocurrency’s worth plummeted to below $1, inflicting heavy monetary losses. Many traders, together with, noticed their investments dwindle by in only a few hours.
Milei rapidly deleted the tweet and later defined that he was unaware of the small print surrounding the coin earlier than selling it. He acknowledged that when he grew to become conscious of the scenario, he eliminated the put up and distanced himself from the undertaking.
The incident raised considerations a couple of potential “rug pull” rip-off, the place builders artificially inflate the worth of a coin earlier than promoting off their holdings, leaving traders with nugatory tokens. Regardless of the crash, the coin nonetheless holds a market worth of $250 million.
In response to Reuters, opposition lawmakers in Argentina have urged that Milei might face an impeachment trial in Congress over the incident, whereas the nation’s fintech chamber acknowledged the potential for foul play.
The case has drawn consideration not solely to Milei’s involvement but additionally to the broader dangers of cryptocurrency investments, stressing how rapidly the market can flip from hype to catastrophe.