Argentine President Embroiled in Cryptocurrency Controversy

Presidential Promotion Sparks "Rug Pull" Accusations

Argentina's President Javier Milei, a former economist, recently found himself in hot water after promoting the $LIBRA coin on X (formerly Twitter). His post promised the cryptocurrency would fund small businesses and startups, leading to a surge in its price.

However, Milei's swift deletion of the post just hours later triggered a dramatic price crash, leaving investors, many of whom were reportedly based in the US and Asia, reeling from significant losses. Accusations of a "rug pull"—a scheme where promoters artificially inflate a cryptocurrency's value before abandoning it and pocketing the profits—quickly followed.

Presidential Justification and Political Fallout

While the Argentine presidential office claimed the post was removed to prevent speculation, the incident ignited a political firestorm. Opponents branded Milei a "crypto scammer," and calls for his impeachment echoed across the political landscape.

Milei, in a televised interview, defended himself as a "techno-optimist" simply trying to support Argentine projects. He dismissed the criticism as a "slap in the face" and lamented the "lowly" nature of his political adversaries.

"The most interesting lesson," Milei reflected, "is that I need to put up more filters. It can't be so easy for people to reach me." This statement suggests a potential shift in the online presence of a president known for his active engagement on X.

Impeachment Unlikely, but Credibility Tarnished

Despite the uproar, analysts believe impeachment is unlikely due to insufficient support from centrist political blocs. However, ongoing investigations into the incident could negatively impact Milei's approval ratings.

As Marcelo García of Horizon Engage consultancy noted, this episode will likely "stain the president's credibility in the medium to long term," particularly given Milei's frequent pronouncements of his economic expertise.