Argentina’s President Javier Milei promoted a crypto meme coin, Libra, which quickly collapsed, causing retail investor losses and significant gains for promoters. Milei subsequently denied involvement, facing fraud allegations. The incident raises ethical concerns similar to past cases involving other leaders and their ties to cryptocurrency campaigns, amidst a fluctuating market influenced by political engagements.
On February 12, 2025, Argentina’s President Javier Milei faced backlash after promoting the meme coin Libra on his social media platform. Although he described it as a project aimed at stimulating Argentina’s economy, the coin collapsed within hours, resulting in significant losses for retail investors while allowing promoters to profit by tens of millions.
In a deleted post on social media platform X, Milei stated, “This is a private project dedicated to encouraging the growth of the Argentine economy,” along with a Solana contract address for the Libra token. The coin, created by KIP Protocol and Hayden Davis, was promoted through a link to the website vivalalibertadproject.com, which references a phrase commonly used by Milei at the conclusion of his speeches.
Milei, who has publicly distanced himself from the coin despite its initial promotion, has been compared to other world leaders, notably Donald Trump, who have also engaged in promoting meme coins. Meme coins are notorious for their volatility, lacking intrinsic value while often reflecting investor sentiment and risk appetite in cryptocurrency markets.
Following the coin’s launch, its market capitalization briefly reached $4.5 billion, but industry experts noted that insiders purportedly profited over $87 million shortly before the coin lost most of its value within hours. The dramatic drop led Milei to clarify his lack of affiliation with the project, stating he was unaware of its specifics before his earlier endorsement.
As a consequence of this incident, legal actions have been initiated against Milei, with accusations of fraud being levied against him. Jonatan Baldiviezo, an attorney involved in the case, remarked on the potential for illicit associations related to Milei’s promotion of the coin and called the president’s actions critical to the alleged fraud.
The cryptocurrency market has seen fluctuations, particularly since the election of Donald Trump in the United States, which investors viewed as favorable for virtual currencies. The connection of influential figures like Trump and Elon Musk to supportive actions could further influence crypto asset valuations and regulatory considerations despite ongoing concerns regarding conflicts of interest.
Earlier this year, the excitement within the crypto community grew as Trump and Melania Trump launched their respective meme coins, seen as signals of a potentially positive regulatory landscape for cryptocurrency. The emergence of these coins raised ethical questions regarding the impacts on market dynamics and investor interests.
In summary, President Javier Milei’s promotion of the Libra meme coin has sparked controversy and legal scrutiny following its rapid collapse that adversely affected retail investors. Although Milei attempted to distance himself from the project after the fact, he faces accusations of fraud stemming from his initial endorsement. The broader crypto market remains volatile, with historical parallels drawn to other political figures’ involvement in similar endeavors, raising ethical considerations about such promotions.
Original Source: indianexpress.com
