Libra Token Surge and Fall: Was Argentina’s President Involved in Insider Trading?
Libra Token Crash – Argentina’s President, Javier Milei, has publicly denied promoting the controversial Libra token, which saw a rapid surge in value followed by a dramatic decline. This token, part of the Libertad project, raised eyebrows after a significant increase in its market cap, reaching $4.56 billion on February 14, only to plummet by 94% shortly after Milei shared a post about it on X (formerly Twitter). The incident has since been dubbed “Libragate” by local media, sparking multiple fraud accusations and calls for impeachment.
Milei’s Defense and Acknowledgement of the Issue
During an interview on February 17 with Todo Noticias, Milei emphasized that he did not promote the token but rather “spread the word” about it. Despite the backlash, the libertarian economist insisted that his actions were carried out in “good faith,” acknowledging that he had learned valuable lessons from the ordeal. Milei further noted that he would implement stricter filters in his future conduct, aiming to avoid similar situations. However, he stressed that the incident involved only the parties directly connected to the project, and the state should not bear responsibility for the fallout.
The Impact on Investors and the Crypto Community
The controversy has led to accusations of a pump-and-dump scheme, with 44,000 investors potentially affected by the token’s crash. When questioned about the number of affected individuals, Milei suggested that the majority of these investors were bots, estimating that the number of actual people involved was likely around 5,000. He also speculated that it was “very remote” that Argentinians were among those impacted.
In response to the scandal, María Fernanda Juppet, CEO of the Argentine crypto exchange CryptoMKT, believes the controversy will not significantly affect the adoption of cryptocurrencies in Argentina. She stated that most transactions in the country are carried out with dollarized digital currencies, so the Milei case is more likely to spark a political debate rather than a rejection of cryptocurrency technology itself.
The Connection Between Milei and KIP Protocol
Milei initially expressed support for the LIBRA token as a way to boost Argentina’s economy, which suffers from a weak capital market. However, he admitted to not being fully aware of the token’s specifics at the time of his post. Despite this, he acknowledged a meeting with representatives from KIP Protocol on October 19, where the company introduced him to the blockchain project. In a statement, KIP Protocol clarified that it had no involvement in creating the token or its launch, stating that it was simply a tech consultancy firm hired to help distribute project funds to local businesses.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
Leave a comment