Argentina’s political landscape is currently engulfed in controversy following President Javier Milei’s promotion of the Solana-based Libra token. His endorsement, which was shared with his vast social media following, led to a dramatic surge in the token’s value—only to see it crash shortly after, causing significant investor losses.
Milei’s initial social media post was intended to raise awareness of a cryptocurrency initiative designed to support local Argentine entrepreneurs. However, the market responded with a frenzy, causing Libra’s price to skyrocket, briefly reaching a valuation of $4 billion before plummeting. Milei defended his actions, stating that he did not encourage anyone to purchase the token, but rather aimed to highlight a tool for financing businesses. He also acknowledged the need for stricter vetting processes for those seeking meetings with him, following an internal investigation by the Argentine government.
Despite Milei’s defense, the fallout has been significant. Argentina’s S&P Merval Index dropped 5.6%, marking its steepest decline since July, as investors pulled back from local companies. Legal actions have also surged, with over 100 lawsuits filed against Milei, and several law firms lodging complaints with the U.S. Securities and Exchange Commission. While the economy minister downplayed the incident, calling it an “unforced error,” legal and political repercussions are mounting.
Opposition leaders have pushed for impeachment, although securing a two-thirds majority in Congress remains a significant hurdle. On the other hand, Milei continues to promote the Libra token, sharing a tutorial on how to buy it, which led to another 60% surge in its value. This move has sparked further controversy, raising questions about his intentions and understanding of the cryptocurrency sector.
Argentine President Javier Millei reposted the LIBRA token purchase tutorial on the social platform X. Although Millei had previously stated that he would no longer spread the LIBRA message and deleted the tweet. The opposition is pursuing an impeachment effort against Millei.… pic.twitter.com/kEqEgVSctH
— Wu Blockchain (@WuBlockchain) February 17, 2025
As the situation unfolds, Milei is preparing for a visit to Washington to seek financial aid and tariff exemptions, highlighting the broader international implications of this unfolding saga.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: LIBRA Coin Scandal: Insider Trading & Milei’s Involvement
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