Argentine President Javier Milei is under fire after his social media endorsement of an obscure cryptocurrency led to a market crash, triggering calls for his impeachment from opposition lawmakers. The controversy erupted late Friday when Milei promoted a digital coin called $LIBRA on X (formerly Twitter), causing its price to surge nearly fivefold before it suddenly plummeted.
A Crypto Endorsement Gone Wrong
Milei’s post on X led to a frenzy among investors, sending $LIBRA soaring to almost $5 per token. However, just hours later, the price collapsed below $1, sparking suspicions of a potential “rug pull” scam—a fraudulent scheme where developers manipulate prices by attracting investors before dumping their holdings for profit.
Argentina’s fintech industry has raised alarms over the incident, with experts warning that such events damage the country’s credibility in financial markets. The situation has drawn international attention, given Argentina’s ongoing economic struggles and its recent embrace of digital assets as part of Milei’s libertarian economic policies.
Opposition Lawmakers Call for Impeachment
The political backlash was swift. Opposition legislator Leandro Santoro condemned Milei’s involvement, calling the situation an “international embarrassment” and demanding an impeachment trial in Congress.
“This scandal humiliates us on a global scale,” Santoro stated, arguing that the president’s actions warrant serious scrutiny. Critics claim that Milei’s reckless promotion of an unverified cryptocurrency undermines investor trust and raises ethical concerns about the government’s stance on financial regulation.
Milei’s Response and Damage Control
Following the backlash, Milei quickly deleted his post on X. Local media reports suggest the post remained visible for several hours before being taken down. The president later defended himself, claiming he had no prior knowledge of the project’s details.
“I was not aware of the specifics of this cryptocurrency. Once I found out, I decided to stop promoting it,” Milei stated. Despite his explanation, the damage had already been done, with many questioning how a head of state could endorse a volatile asset without thorough due diligence.
Argentina’s Complicated Relationship with Crypto
Milei has been an outspoken advocate of decentralized finance, seeing cryptocurrencies as a potential solution to Argentina’s long-standing economic woes, including hyperinflation and a devalued peso. However, this incident has reignited debates on the risks of digital assets, especially when promoted by high-profile figures.
Financial regulators and experts argue that while blockchain technology holds promise, the lack of oversight makes it a fertile ground for scams. The $LIBRA fiasco underscores the importance of regulatory frameworks to protect investors from market manipulation.
What’s Next for Milei?
With the impeachment threat looming, Milei faces a challenging political battle. While his libertarian policies have gained support from younger, tech-savvy voters, this scandal could erode confidence in his leadership. Whether the opposition’s call for impeachment gains traction remains uncertain, but the controversy has undoubtedly put Milei’s judgment under the spotlight.
The fallout from this incident will likely shape Argentina’s approach to cryptocurrency regulation and influence investor sentiment in the country. As the situation unfolds, all eyes remain on how Milei and his administration will navigate the crisis.
