Introduction
Libra Argentina ($LIBRA), a cryptocurrency, became intricately intertwined with Argentinas political scene in 2025 following a controversial endorsement by the countrys president, Javier Milei. The incident led to a massive market crash and a subsequent political backlash, highlighting the risks and volatility associated with digital currencies.
Promotion by President Javier Milei
On February 14, 2025, President Javier Milei took to X (formerly Twitter) to promote the $LIBRA cryptocurrency. In his endorsement, Milei linked the digital token to the Viva La Libertad Project, a venture aimed at funding small businesses across Argentina. However, this promotion would soon lead to a series of unforeseen consequences that shook both the crypto market and the political scene in Argentina.
Market Impact
In the wake of President Mileis endorsement, the value of $LIBRA surged to an astounding $4.5 billion. This significant rise, however, was short-lived. Within just a few hours, the tokens value collapsed by over 90%, wiping out nearly $4.4 billion in market value. The dramatic rise and fall in value sparked allegations of market manipulation and raised questions about the presidents involvement.
Controversy and Investigation
The abrupt collapse of $LIBRAs value led to accusations of a pump-and-dump scheme. Critics pointed to the fact that 82% of $LIBRAs supply was controlled by a few wallets, suggesting potential market manipulation. In response to these allegations, an investigation was launched into potential misconduct relating to the promotion and subsequent crash of the cryptocurrency.
Political Backlash
President Mileis involvement with $LIBRA not only caused upheaval in the market but also ignited a political firestorm. His endorsement of a speculative asset drew criticism from opposition parties, who called for his impeachment. The incident underscores the high-stakes intersection of politics, finance, and the emerging world of digital currencies.
