President Javier Milei controversially endorsed the ‘$LIBRA’ cryptocurrency, which quickly lost value, raising suspicions of fraud. Critics questioned the token’s legitimacy, citing concentration of supply and lack of liquidity. Milei insisted it was a genuine initiative to fund small businesses, though many view it as ethically questionable. This incident follows earlier controversies involving Milei and crypto schemes.
Javier Milei, the President of Argentina, ignited controversy by endorsing a cryptocurrency token called ‘$LIBRA’ on social media. He promoted it as a lucrative investment opportunity to support small Argentine businesses. However, soon after, the token’s value plummeted, resulting in devastating losses for investors and generating skepticism among crypto experts and politicians, suspecting potential deceit or a Ponzi scheme within the initiative.
Following his endorsement, ‘$LIBRA’s’ market capitalization soared to $6 billion before crashing dramatically to approximately $0.99 per token. Critics quickly pointed to the token’s lack of liquidity and substantial ownership concentration, warning of potential market manipulation. Economists and political opponents alike lambasted Milei, with allegations of fraud surrounding his involvement.
Milei maintained that the project was a legitimate private initiative aimed at financing local entrepreneurs. He clarified his position in an interview, asserting no actual involvement in the operations of the ‘$LIBRA’ token. Nonetheless, numerous members of his team and other political figures raised concerns about the viability of the project and urged transparency regarding the funding mechanism and token distribution.
Doubts about the authenticity of his endorsement initially emerged, prompting speculation that his social media account may have been compromised. However, confirmation from his associates indicated that the message was legitimate, intensifying criticisms of Milei’s intentions. Critics, including former allies, claimed that his promotion of the token constitutes grounds for impeachment based on concerns of fraud and ethical misconduct.
Specialists concluded ‘$LIBRA’ does not operate on decentralized principles like mainstream cryptocurrencies, thus lacking necessary security measures. The project’s associated website appeared vague, with little information provided about funding eligibility or distribution protocols, stirring fears of insufficient investor protection. Critics also noted parallels to previous controversies surrounding Milei’s cryptocurrency advocacy, further damaging his credibility.
The Viva La Libertad Project, associated with the ‘$LIBRA’ token, seeks funding for startups and small enterprises but lacks clarity on operational specifics. The promotional material emphasizes decentralization but does not deliver technical details crucial for potential investors. The ambiguity raises questions regarding Milei’s true role in this venture and its implications for Argentina’s economic landscape.
President Javier Milei’s endorsement of the ‘$LIBRA’ cryptocurrency sparked significant backlash, as the token’s value dramatically collapsed shortly after his promotion. Critics speculate that the initiative may be fraudulent, with previous allegations against Milei compounding the mistrust. The lack of clarity regarding the token’s operations and funding mechanism prompts further concerns about investor security and ethical standards in the government.
Original Source: batimes.com.ar
