In February 2025, Argentine President Javier Milei became embroiled in controversy for promoting a MEME coin called 'LIBRA'. Below are the details and controversies surrounding the event:

Event Details

• February 14, 2025: Milei announced the launch of the MEME coin 'LIBRA' through his official social media accounts on X (formerly Twitter) and Instagram, claiming that the token aimed to fund small businesses and startups in Argentina through the 'Viva La Libertad' project.

• Market Volatility: The price of the LIBRA token skyrocketed to $7.8 shortly after its release, with a market cap briefly surpassing $4.6 billion. However, the price subsequently plummeted over 85%, dropping to a low of $0.16, with the market cap shrinking to about $590 million.

• Internal Cashing Out: On-chain data shows that at least three addresses withdrew funds from exchanges hours before Milei's tweet was published, and bought LIBRA after the tweet was released, later selling at high prices for a profit exceeding $20.18 million.

• Presidential Clarification: Milei later deleted the tweet promoting LIBRA and stated that he 'did not understand the project details', emphasizing that it was a private project and unrelated to him.

Controversial Points

1. 'Rug Pull' Operation: The incident has been labeled a typical 'rug pull' scheme, where developers sell off tokens when cryptocurrency prices peak, leading to a price crash and significant losses for investors.

2. Presidential Responsibility: Opposition lawmakers accused Milei of abusing public trust by promoting a cryptocurrency that may have fraud risks. Some lawyers and professionals have filed a class-action lawsuit against Milei, accusing him of violating Argentina's 'Public Morality Law'.

3. Government Intervention: The Argentine Presidential Office has instructed the anti-corruption office to investigate whether Milei and other government members engaged in misconduct.

4. Impeachment Threat: The Argentine opposition plans to initiate impeachment proceedings against Milei, believing his actions have caused a negative impact internationally.

Background and Impact

• Milei has previously sparked controversy with his radical neoliberal economic policies, and his promotion of the LIBRA token has further intensified domestic skepticism regarding his policies.

• The incident has not only caused a stir domestically but has also attracted widespread international attention, with some analysts suggesting that it could negatively impact Argentina's economic image and government credibility.