Argentine president endorses LIBRA token, triggering surge and controversy before sell-off.

From Cointelegraph
March 1, 2025 12:35:00 PM:

Argentine President Javier Milei sparked controversy by endorsing the LIBRA token on X, causing its value to surge to $5 billion before a massive sell-off wiped out millions in investor funds. The project aims to support Argentine investors and citizens in a decentralized manner, with 50% tokens allocated for Argentina’s growth.

Hayden Davis, CEO of Kelsier Ventures, was involved in launching LIBRA and had ties to Milei. However, KIP Protocol denied involvement, stating they were only approached for financing support. Dave Portnoy and an anonymous crypto firm were also linked to the meme coin launch.

Critics accused Milei of orchestrating a rugpull scam with LIBRA, leading to lawsuits and investigations. Latin American leaders expressed concern over the scandal, with Milei facing accusations of fraud, market manipulation, and insider trading, potentially causing losses for investors.

Milei denied any wrongdoing, stating his support for LIBRA was part of his free-market philosophy. Despite public skepticism, Milei’s office defended him, attributing any deception to the president himself. The scandal raised questions about political figures endorsing volatile crypto projects.

A formal investigation into Milei’s involvement in LIBRA has begun, with calls for impeachment and concerns of fraud and market manipulation. The US Department of Justice is investigating the project as well. The scandal could harm Milei’s credibility ahead of Argentina’s midterm elections.

LIBRA’s controversy is likened to a classic rug pull, where developers inflate a token’s value before draining liquidity, causing massive losses. Similar incidents like Hawk Tuah and Froggy highlight the risks in DeFi projects. Milei’s scandal adds to the list of high-profile rug pulls, sparking backlash and legal scrutiny.

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