"Argentina's President Promotes LIBRA Crypto, Sparking Pump-and-Dump Scandal"

Argentina's President, Javier Milei, is under investigation for promoting a little-known cryptocurrency, LIBRA, which has been accused of being a pump-and-dump scheme. Milei's endorsement briefly drove up the token's value before it plummeted, leading to accusations of misconduct and potential legal violations.

On February 14, President Milei promoted LIBRA on X, claiming it could boost Argentina's economy and benefit small businesses. His statement triggered a surge in the token's price, with the market cap hitting over $4 billion in hours. Insiders cashed out over $100 million in profits. However, the rally was short-lived, and the token's value crashed soon after, indicating a classic pump-and-dump scheme.

The incident has sparked a political crisis, with critics accusing Milei of reckless promotion of a speculative asset that led to financial losses for investors. Argentine lawmaker Gabriela Estevez accused him of engaging in a classic pump-and-dump scheme, describing it as a severe financial fraud that manipulated market prices for personal gain.

The backlash has also led to impeachment threats. A political faction has initiated proceedings, calling the scandal unprecedented in Argentina's history. Buenos Aires Governor Axel Kicillof echoed these concerns, labeling the incident a large-scale financial fraud and warning that investors in Argentina and beyond had been misled, comparing the situation to a typical cryptocurrency pyramid scheme.

Overall, this is a major reflection of how political endorsement, since the TRUMP launch, has made the meme coin market extremely vulnerable. Previously, Ethereum co-founder Vitalik Buterin also warned that more political meme coins could harm the market's progression. Since Trump's meme coin launch, several scammers have launched and pumped fake tokens based on other political leaders. LIBRA is just another latest example of the current extreme risks of this space.