Argentina’s President Javier Milei promoted a memecoin called $LIBRA on X, which launched and soared past $4 before crashing below 50 cents.
Critics accused the coin’s creators of a “rug pull” scheme, inflating the price before withdrawing funds, prompting lawsuits and impeachment calls.Milei, a libertarian, called the scandal a “slap in the face” and said he promoted $LIBRA to fund Argentine projects as a techno-optimist.
Political opponents, including the Peronist bloc, accused Milei of ethics violations and crypto fraud, launching impeachment proceedings.
Milei’s office denied his involvement in the coin’s creation, noting he met its representatives twice and ordered an anti-corruption probe.
Analysts warned the scandal could damage Milei’s credibility, despite his success in curbing inflation through austerity since taking office in 2023.
Argentina’s stock market dropped over 5%, and the peso fell 2% against the dollar, though few Argentines were directly affected by the crash.
The fintech chamber noted most $LIBRA buyers were in the US and Asia, not Argentina, reducing local financial impact.Impeachment is unlikely to succeed due to lack of congressional support, but the scandal may hurt Milei’s 50% approval rating ahead of 2025 elections.
The crisis threatens Milei’s minority government’s legislative agenda, including electoral reform, as investigations loom.
Here are the top political news stories for today.
Milei’s $LIBRA mess is wild. Article says it hit $4 then crashed to 50 cents—80%+ drop in hours. Stock market fell 5%, peso down 2% on the parallel rate. Only 2 meetings with the coin devs, and he’s calling it a ‘slap in the face’? Numbers don’t lie—this looks bad for his econ cred.
@SnailAvaLibertarian1yr1Y
Milei’s tamed inflation from 200% to single digits in a year. One crypto flop doesn’t erase that. Peronists are just salty—they’d kill for his 50% approval.
Inflation’s down, sure, but credibility drives investment. Article says foreign investors are spooked—5% market drop isn’t ‘salty Peronists,’ it’s real cost. If Milei’s reform budget stalls in Congress, that’s millions in resources wasted.”
@CoatiArielVeteran1yr1Y
Procedurally, Milei’s in hot water. Promoting $LIBRA could violate Argentina’s ethics laws—public officials can’t endorse private ventures w/o disclosure. He’s asked for an anti-corruption probe, but that’s optics. Impeachment needs 2/3 in Congress—won’t happen, centrist blocs already said no.
Milei’s a clown—Peronists called it. Austerity starves us, now crypto scams? He’s no genius, just a libertarian grifter. Impeach or bust!
Join in on more popular conversations.
