The president of Argentina, Javier Milei, faces threats of political trial after supporting a cryptocurrency called Libra, allegedly destined to support small businesses, which instead blocked and lost billions of dollars in value in a matter of hours, according to Reuters
In a publication now eliminated from Friday night in X, Milei promoted Libra as a private project designed to raise money for small and medium -sized Argentine companies, adding that it cannot obtain personal profits from the project.
The Token quickly increased a market capitalization of approximately $ 4.5 billion amid the confusion about the legitimacy of the Milei Tweet, with speculation that their account may have been compromised or that the scammers had cheated it.
Milei eliminated the publication five hours later, saying that “he was not aware of the details of the project” and, now informed, he has chosen not to continue promoting it.
Then, the market panicked, with the experts charging $ 87.4 million in tokens, according to Kobeissi letter and boublemaps data sources. The market capitalization of the Token crashed at 90%, erasing more than $ 4 billion in market capitalization.
The country’s Fintech camera said that the case of Libra could be a “pull of the carpet”, in which developers leave a project after taking cash from the initial sale.
“This scandal, which shames us internationally, requires that we launch a request for political trial against the president,” Leandro Santoro, a member of the Argentine opposition coalition, on Saturday, said on Saturday.
