Argentinian President Javier Milei has come under fire for promoting a memecoin called LIBRA, which is based on the Solana 
$86 blockchain. He faces accusations of encouraging people to buy this cryptocurrency, leading to significant financial losses when its value surged and then plummeted by 95%. In response to the criticism, Milei stated that his intention was merely to “disseminate information.”
Value Drop of LIBRA and Milei’s Defense
In a television program, Milei characterized himself as a “technology enthusiast” and insisted that his post was not meant as investment advice. He viewed LIBRA coin as a potential tool for entrepreneurs to finance their projects.
Addressing the losses, Milei claimed that “maybe four or five Argentinians were harmed,” arguing that most affected investors were from China and the U.S. However, these comments did little to appease the disgruntled investors. His acknowledgment of meeting with the LIBRA team and intention to support the project further fueled the criticisms.
Collapse of LIBRA Coin
Milei quickly deleted his post about the LIBRA coin, which had initially caused its value to soar to $4 billion before it lost 95% of its worth. This situation resulted in substantial financial losses for LIBRA investors.
Hayden Davis, an advisor for the LIBRA project, blamed Milei for the collapse, asserting that the president’s withdrawal of support led to further devaluation. Nevertheless, many experts noted that LIBRA was a speculative asset destined to fail eventually.
After hastily retracting his support for LIBRA, Milei faced allegations of fraud. Investigations regarding the legal implications and the plight of the investors are ongoing.
