In a recent development that has rocked Argentina’s political and financial landscape, President Javier Milei’s endorsement of a cryptocurrency led to a rapid market collapse. This incident has not only raised questions about his leadership but also sparked calls for impeachment from opposition parties. The event unfolded with alarming speed, highlighting the dangers of promoting unverified projects in an already fragile economy.

The Swift Rise and Fall of $LIBRA

On a quiet Friday evening, President Milei tweeted his support for a new cryptocurrency called $LIBRA, describing it as a private initiative aimed at boosting small businesses in Argentina. Within an hour, the coin experienced an unprecedented surge, reaching a market capitalization of nearly $4.5 billion. However, this meteoric rise was short-lived. As trading volumes peaked, insiders began selling off their holdings, causing the value to plummet almost immediately.

By Saturday morning, nearly all of the newly gained market value had evaporated. Financial analysts noted that 82% of the tokens were held by a single entity, suggesting a premeditated scheme to cash out while retail investors were left holding worthless assets. Milei quickly distanced himself from the debacle by deleting his original tweet and issuing a statement claiming he was unaware of the project’s details. Despite this, critics argue that his endorsement without due diligence is indicative of irresponsible governance.

This incident has further tarnished Milei’s image since taking office in 2023. His policies, which promised economic revival through radical measures, have instead plunged more than half of Argentina’s population into poverty. Recent mass protests over his controversial stances on social issues have added to the growing discontent among citizens.

Implications and Public Reaction

From a journalist's perspective, this episode underscores the critical need for transparency and accountability in leadership. Milei’s actions highlight the risks of endorsing financial products without thorough investigation, especially in a country already grappling with economic instability. The opposition’s call for impeachment reflects the public’s frustration with what they perceive as reckless decision-making. Ultimately, this event serves as a stark reminder of the importance of responsible governance and the potential consequences of hasty endorsements.