Argentine President Javier Milei sat at the center of a major debate with the collapse of a crypto currency project supported by social media. Introducing the crypto currency called LIBRA with a sharing on Friday night, Milei encouraged investors with the promise that it would encourage economic growth and support small businesses. However, in a short time, Coin’s value fell rapidly and investors suffered great losses. This development caused serious question marks on Milei’s responsibility and the risks of crypto currency markets.
Argentine President, who introduced LIBRA, faced great risk
Argentine President Javier Milei is intensively criticized for the collapse of a crypto currency supported on social media because of the collapse of investors. On Friday night, Milei shared a tweet introducing a little -known crypto currency, allegedly portraying the economy and supporting small businesses in Argentina. Following the tweet, the value of $ LIBRA suddenly rose and the market value increased to $ 4.4 billion. However, within hours, the value of the crypto currency fell below $ 1, causing a great financial loss. Investors, especially those who invest in crypto money, suffered great damage within a few hours.
Millei quickly deleted his tweet and then stated that he had no information about the details of the crypto currency and that he had withdrawn his support for the project. After learning the situation, he removed the sharing and moved away from the project. This incident raised concerns about “Rug Pull” fraud. In such frauds, developers artificially inflate the value of a crypto currency, then sell their coins and leave investors alone with worthless tokens. After the crisis, $ LIBRA still has a market value of $ 250 million.
Milei, trial
According to Reuters, the opposition deputies in Argentina claim that Milei may face a dismissal trial in the Congress because of this incident, while the country’s fintech room drew attention to the possibility of a malicious game. This event, not only the role of Milei, but also the wider risks of crypto currency investments revealed. He once again showed how the crypto money market could return from excitement to disaster.
