Argentine President Javier Milei is facing potential impeachment after endorsing a cryptocurrency that quickly collapsed, resulting in significant financial losses for investors. This incident has raised serious concerns among lawmakers regarding Milei’s responsibility in the matter.
On a recent Friday night, Milei tweeted his support for a cryptocurrency token named $LIBRA. He described it as a project aimed at boosting the Argentine economy by funding small businesses. Following the tweet, $LIBRA experienced a dramatic surge, skyrocketing by 2,000% within an hour, reaching a peak market capitalization of nearly $4.5 billion.
However, the situation took a sharp turn as insiders began selling off their holdings. An analysis indicated that 82% of the token was controlled by a single cluster, suggesting that the creators and early investors were waiting for a sufficient number of retail investors to enter before cashing out. In just five hours, the token’s market cap plummeted, wiping out nearly $4.5 billion.
As the value of $LIBRA collapsed, Milei attempted to distance himself from the situation. He deleted his initial tweet and later claimed he had no prior knowledge of the project’s details. This reaction has not sat well with opposition lawmakers, who view the incident as a significant embarrassment for Argentina on the international stage.
In response to the unfolding scandal, opposition lawmakers are considering an impeachment request against Milei. They argue that his actions warrant accountability, particularly given the severe financial impact on investors.
This incident adds to the challenges Milei faces since taking office in 2023, where his controversial policies have already plunged a significant portion of the Argentine population into poverty.
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