LIBRA Coin Shocks Crypto Industry in Argentina: Scandal, Losses, and Impeachment Threats

The crypto industry is once again shaken after Argentine President, Javier Milei, was allegedly involved in promoting a cryptocurrency named LIBRA ($LIBRA). This token experienced a significant price surge before ultimately crashing, causing many investors to suffer huge losses.

The Beginning of LIBRA and Milei's Involvement

LIBRA, developed by the team behind the KIP Protocol and advisor Hayden Mark Davis, was initially marketed as a Solana-based token aimed at supporting startups and small businesses in Argentina. Its popularity soared when President Milei promoted the token through social media, calling it a project that could "drive economic growth in Argentina."

Shortly after the support, the price of LIBRA skyrocketed to a market capitalization of billions of dollars. However, within hours, the token's value plummeted by more than 90%, triggering accusations that the project was part of a "pump-and-dump" scheme.

Alleged Fraud Scheme and Public Reaction

Some crypto analysts refer to the collapse of LIBRA as similar to a 'rug pull' scheme, where developers or insiders sell their assets when the price reaches its peak, leaving retail investors at a loss. Opposition politicians and economic experts believe that Milei's actions in promoting LIBRA without sufficient research could be considered as public-harming fraud.

Amid increasing pressure, Milei deleted his post and claimed that he had no direct connection to the project. The Presidential Office also issued a statement that the promotion was done without fully understanding the LIBRA project and its impact on investors.

Investigation and Impeachment Threats

This case has now attracted the attention of the anti-corruption authorities of Argentina, who plan to investigate Milei's involvement and his government in promoting LIBRA. In addition, some opposition parliament members have even proposed the impeachment of the president on allegations of abuse of his influence in the financial industry.

On the other hand, Hayden Mark Davis, one of the figures involved in the LIBRA project, denied that this is a scam scheme. He claimed that the Milei team had previously agreed to the promotion, but suddenly withdrew their support when the price started to drop.

Impact on the Crypto Market

The LIBRA case serves as a warning for investors and regulators about the significant risks involved in crypto investments, especially those involving public figures. This incident also reflects how endorsements from political figures can drastically impact the market in a short period of time.

With the increasing scrutiny of potentially harmful crypto projects, many are wondering whether LIBRA is just a failed experiment or part of a larger financial scandal. One thing is certain, this controversy has added to the long list of fraud cases in the world of digital currencies.