The president of Argentina, Javier Milei, has found himself in a bit of a pickle after promoting a Token Meme in Solana called Libra, which was supposedly designed to foster economic growth in the country. But, things took a turn for the worse when the token’s price skyrocketed and then collapsed, losing over 95% of its value. So, what exactly happened here?
Milei had taken to social media to promote the token, stating that it was a private project aimed at helping small and medium-sized enterprises in Argentina. He even went so far as to say that the money collected would be used to support these businesses. However, it seems that the project’s intentions weren’t entirely pure. The token’s price surged over 2,000% after Milei’s endorsement, reaching a market capitalization of $4.4 billion before it all came crashing down.
As it turns out, the project’s developers had made off with around $107 million, leading many to accuse them of running a “pump and dump” scheme. This is when a group of people artificially inflate the price of a token by spreading positive information, only to sell it off at the peak, leaving other investors with significant losses. The cryptocurrency analyst, Conor Grogan, raised concerns when he pointed out that the wallet implemented by Libra had received funds from an exchange that didn’t require verification of its clients.
Milei’s Backpedaling
As the situation unfolded, Milei quickly distanced himself from the project, deleting his initial promotional post and claiming that he wasn’t aware of the details of the project. He stated that he had simply been supporting a private venture and had no link to it. However, this explanation hasn’t exactly been convincing, given that the token’s collapse resulted in the destruction of over $4 billion in retail capital in just 7 hours.
The whole ordeal has left many wondering how something like this could happen, especially with the president of Argentina involved. Milei’s actions have sparked accusations of him trying to take advantage of the situation to harm his political opponents. As he said in a follow-up post, “To the unclean rats of the political caste that want to take advantage of this situation to harm…”
In a tweet, Milei wrote, “A few hours ago I published a tweet, like so many other infinite times, supporting an alleged private venture that obviously I have no link. I was not internalized from the details of the project and after having internalized I decided not to continue giving him…”
The situation has raised questions about the legitimacy of cryptocurrency projects and the potential risks involved. It’s essential for investors to be cautious and do their research before putting their money into any project. As always, it’s crucial to remember that investments in cryptoactive are not regulated in some countries and may not be suitable for retail investors, as the total amount invested could be lost. It’s vital to understand the laws in your country before investing and to proceed with caution.