🔔 Controversy Erupts as Argentine President Javier Milei Promotes LIBRA Token Amid Allegations!
Argentine President Javier Milei is facing significant backlash after endorsing the LIBRA token, which he claimed would support local businesses. However, the promotion quickly turned controversial, leading him to delete the post amid rising concerns of a potential scam.
Highlights of the Situation:
• Market Turmoil: Following the endorsement, the token’s value skyrocketed but then plummeted by 85% within a matter of hours, resulting in substantial losses for many investors.
• Insider Cash-Outs: Investigations into blockchain activity revealed that wallets associated with the LIBRA team cashed out approximately $87 million, with some reports suggesting that total cash-outs reached around $107 million.
• Centralization Issues: Analysis indicated that a staggering 82% of the token’s supply was held in just a few wallets, raising alarms about centralized control and potential market manipulation.
• Milei’s Withdrawal: In light of the backlash, Milei has distanced himself from the project, claiming ignorance about its details and admitting he failed to conduct proper research before promoting it.
• KIP Protocol’s Role: KIP Protocol, which focuses on web3 frameworks for AI applications, later took responsibility for managing fund distribution related to LIBRA.
• Animoca Brands’ Disavowal: Animoca Brands swiftly denied any involvement in the development or launch of the LIBRA token.
Allegations and Responses:
Critics have accused Milei of endorsing what appears to be a “pump and dump” scheme, potentially misleading his supporters. Renowned economist Carlos Maslatón went so far as to suggest that Milei could be implicated in crypto fraud, prompting discussions about possible impeachment. This incident is not Milei’s first brush with controversy in the crypto space; he previously promoted CoinX, which was later alleged to be a Ponzi scheme.