President Javier Milei faced backlash after promoting the cryptocurrency token $LIBRA, which reportedly became nearly worthless shortly after his endorsement. Critics have accused him of endorsing a fraudulent scheme, with many experts highlighting significant risks associated with the token’s structure. Milei maintains the token is intended to support Argentine businesses, although doubts about its legitimacy linger in the crypto community.
On Friday evening, President Javier Milei stirred controversy after recommending a cryptocurrency token, $LIBRA, to his followers. Shortly after his endorsement, the token’s value plummeted from nearly $5,000 to just under $1, raising suspicions about its legitimacy. Critics have labeled Milei’s promotion as potentially fraudulent, with suggestions that it may have been a ‘rug pull’ scheme designed to exploit investors’ trust.
Milei claimed that the initiative was a private effort aimed at helping Argentine businesses and entrepreneurs. He characterized the currency as a sincere project with no involvement from him, further stating, “The project is aimed at Argentine entrepreneurs so that they can apply for funds to finance their projects.” Nevertheless, financial experts have expressed concerns about the token’s lack of liquidity and the concentration of its ownership.
The negative backlash from the crypto community was immediate, with accusations that Milei could face legal consequences for his involvement. Liberal economist Carlos Maslatón accused him of being complicit in a crypto fraud scheme. Speculation arose about potential hacking of his account before La Libertad Avanza Deputy Lilia Lemoine confirmed the post’s authenticity, dismissing these theories.
Various voices from both the political sphere and crypto space reacted strongly. Some supporters attempted to defend Milei, while prominent analysts raised alarms regarding the token’s transparency and governance, noting possible price manipulation risks. Skepticism about the token’s structure included concerns over two accounts controlling a significant majority of the supply.
This incident is not an isolated one for President Milei; he faced similar accusations previously, including promotion of the CoinX platform, which led to investigations for alleged fraud. The ongoing scrutiny over these ventures raises critical questions about governance and ethical practices in the cryptocurrency field.
The controversy surrounding President Javier Milei’s endorsement of the $LIBRA token has drawn significant scrutiny from both financial experts and political figures. Critics suggest that the initiative could be a scam, highlighting the risks associated with the token’s ownership distribution and liquidity. Milei’s previous promotion of similar projects fosters skepticism regarding his motives and the integrity of his engagements in the crypto space, which continues to generate debate and concern among stakeholders in Argentina and beyond.
Original Source: batimes.com.ar
