Argentine President Javier Milei created a stir by promoting a token called LIBRA, whose value skyrocketed and then crashed, leading to accusations of a possible “pump and dump” scheme.
On Friday, February 16, Argentine President Javier Milei posted a message on his X account that generated an immediate impact in the world of cryptocurrencies and politics. In the tweet, Milei promoted a token called LIBRA, presenting it as a project aimed at boosting economic growth in Argentina.
The post included claims about the benefits this digital currency could bring to the country, highlighting its potential for financing small businesses and local entrepreneurshipHowever, what happened shortly after the publication was that the token rose exponentially in value, trading above $5, and then abruptly fell, leaving thousands of people in shock. This situation has generated serious accusations about the transparency of the project and the role of the president in its promotion.
TRADE WITH STABLECOINSFrom presidential promotion to collapse
Following Milei’s announcement, the value of LIBRA experienced a spectacular rise, reaching a value of $5 in less than an hour. Many investors, attracted by the supposed legitimacy conferred by the presidential endorsement and driven by the expectation of obtaining quick profits, decided to dive into the purchase of this token. However, the euphoria was short-lived. Within hours, the value of LIBRA plummeted drastically, falling to less than $0,27 at the time of writing this article.
The sudden collapse left tens of thousands of people with significant economic losses and sparked an intense debate about the president's responsibility for the project.
In the wake of the LIBRA debacle, Milei deleted his original post, in which he shared the cryptocurrency’s smart contract, and claimed he was unaware of the specific details of the project. However, accusations of being involved in a “pump and dump” scheme — a type of scam in which the value of an asset is artificially inflated in order to sell it at high prices — quickly began to circulate. Now, as the Argentine Congress looks to form investigative commissions, the government has announced it will conduct an internal investigation to determine whether laws were broken.
What is LIBRA and how was its promotion developed?
LIBRA was presented as a cryptocurrency aimed at promoting economic development in Argentina. According to Milei's initial message, the project sought to encourage growth by financing small businesses and local entrepreneurships. Also, the name of the currency was not a coincidence: LIBRA refers to the president's zodiac sign, as well as to the political party he leads, "La Libertad Avanza" (Freedom Advances)..
Milei's post had an immediate effect on the market. Many investors, especially those attracted by the high expectations of profit in the world of cryptocurrencies, decided to buy LIBRA tokens in the hope of benefiting from the presidential support. Within minutes, the value of the currency multiplied, reaching $5. This phenomenon was not unrelated to Milei's influence on social media, where she has a significant fan base.
However, the illusion was short-lived. Hours after the announcement, the value of LIBRA began to plummet. Investors, realizing that the currency lacked real backing and that its value had been artificially inflated, chose to sell their tokens en masse. As a result, LIBRA lost more than 90% of its value in a record time frame.
Source: CoinMarketCap
This collapse not only affected investors, but also sparked an intense debate in the political arena. While some sectors directly accused Milei of having actively participated in a "pump and dump" scheme, others questioned the lack of knowledge that his subsequent publication denotes.
"If he was not aware of the project, why did he promote it from the presidential account?", questioned Ramiro Gamboa, journalist and policy advisor.
BUY BITCOINHow far does Milei's responsibility go?
In an attempt to distance herself from the scandal, Milei claimed that she had no detailed knowledge of the project. However, these statements have not been enough to calm the questions.
In Congress, several opposition sectors have announced their intention to form investigative commissions to clarify the events related to the promotion of the token. The aim is to determine whether the president or members of his team had any kind of active participation in the project, as well as whether there was any improper use of presidential influence for personal or third-party benefit.
On the other hand, the government has announced that the Anti-Corruption Office will conduct an internal investigation to assess whether legal violations occurred. In addition, the scandal has had international consequences. The news of the failed promotion of LIBRA and the accusations against Milei went around the world, affecting the perception of Argentina in global markets. Many economic analysts have pointed out that this type of situation can generate distrust in international investors, which could negatively impact the already delicate Argentine economy.
SOLANA BUYSIn conclusion, the LIBRA token case and President Javier Milei's involvement in its promotion has generated a political and economic earthquake in Argentina. What began as an announcement of good intentions and high expectations to boost the nation's economic growth and empowerment quickly turned into a scandal that has affected thousands of people and an entire country, questioning the transparency of its leaders.
DYOR: The lesson of the LIBRA scandal
The LIBRA case serves as a key reminder about the importance of conducting thorough research before investing in new, unknown projects. DYOR stands for «Do Your Own Research» o «Do Your Own Research», It is a fundamental principle in the crypto space that can make the difference between financial success and failure.
When Milei posted her message on X, thousands of people trusted her recommendation without questioning the details of the project. However, instead of being swayed by the influence of public figures and making decisions based solely on blind trust, it is best for investors to analyze the technical foundations of a project, such as its whitepaper or its tokenomics, as well as the community behind it, its trajectory and independent reviews.
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In the case of LIBRA, the project lacked a solid foundation, and its value grew rapidly due to the massive publicity generated by the Argentine president. However, when investors began to question the lack of transparency and real backing of the token, its value collapsed.
Therefore, DYOR is not just a recommendation; it is a must for anyone who wants to successfully navigate the crypto world.
INVITE AND WINInvesting in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.
