#MileiMemeCoinControversy President Javier Milei caused a huge controversy on Friday night after recommending his followers buy a cryptocurrency token that within hours became worthless.
Cryptocurrency experts questioned the head of state’s motives, with some suggesting he may have been the victim of or backed a “rug pull” scheme that scammed his followers. Just after 7 p.m. local time on Friday, Milei posted an enthusiastic endorsement of a new crypto token called ‘$LIBRA,’ informing users on social media about a unique “investment opportunity” on social media.
According to the website promoting the token, it seeks to boost funding for Argentine small businesses and entrepreneurs.
Within hours of the post, the market value of $LIBRA reached US$6 billion, roughly equivalent to that of a major Argentine bank.
The illiquid token was once worth $4,978 per token, before falling to $0.99159 within hours, sending shockwaves through Argentina’s crypto community and political class.
Economists and crypto specialists in Argentina, as well as several opposition politicians, were quick to criticize Milei, pointing out that this digital asset could be a scam or a Ponzi scheme.
After publishing and posting the message, Milei later confirmed to Bloomberg Linea’s website that the initiative ‘is real’ and is based on “pure private funding.”
