The recent episode involving the Argentine president, Javier Milei, and the cryptocurrency $LIBRA has generated intense controversy in the financial sphere.
It all began when Milei, through her account on the social network X, promoted the $LIBRA token, describing it as a tool intended to encourage the growth of the Argentine economy. This action caused a vertiginous increase in the value of the cryptocurrency, reaching a capitalization of 4.5 billion dollars in a matter of hours. However, shortly after, its value plummeted, causing significant losses to numerous investors.
The company behind $LIBRA, Kip Network, had registered the project’s website just hours before the presidential announcement, raising suspicions about the cryptocurrency’s legitimacy. Analysts and politicians became alarmed at the possibility of a rug pull, a scam in which the price of an asset is artificially inflated and then funds are withdrawn, leaving investors with worthless assets.
In the face of growing controversy, Milei deleted his original post and claimed not to be aware of the specific details of the $LIBRA project, disassociating himself from any direct involvement. However, the political opposition was quick to react; figures such as Senator Anabel Fernández Sagasti called the president a Ponzi scam, in reference to Ponzi schemes, and requests for his impeachment have been raised.
This incident has raised alarm bells in the crypto community and among regulators, highlighting the need for greater transparency and due diligence when promoting digital assets, especially when high-profile public figures are involved. Investor confidence is compromised when projects of this nature turn out to be fraudulent or lack sound foundations.
Many opposition politicians are already asking for impeachment, many say that the beginner who put money into cryptocurrency lost everything, and if anyone has lost a lot, he will have lost a lot, but those who know, know that they should not get involved here because they can probably lose or win a lot, the memecoin market is very risky and these tweets, which are not the first time they have happened, already one can know the answer to what can happen.
Don't invest money that you are willing to lose and that would not affect your day-to-day life.
What do you think about all this controversy?
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