Argentine President Milei's Approval Drops 16% Amid LIBRA Memecoin Scandal

Argentine President Javier Milei is grappling with a significant erosion of public trust following his association with the LIBRA memecoin scandal. A national poll conducted between March 12 and March 14 revealed that 57.6% of Argentinians no longer trust the president, while 36% remain supportive and 6.4% are undecided. This indicates that nearly six in ten Argentinians have lost confidence in their leader, reflecting growing disillusionment with the administration’s handling of the country’s economic and security issues.

The LIBRA memecoin scandal began when Milei publicly endorsed LIBRA, a memecoin that saw its market cap surge to over $4 billion in a short period. However, the price of LIBRA plummeted by over 99%, resulting in the loss of investor funds almost overnight. Despite Milei’s attempts to distance himself from the debacle, claiming he acted with good intentions, blockchain investigations suggest otherwise. On-chain analysts found that several insiders with significant holdings in LIBRA sold off more than $100 million shortly after his endorsement, fueling accusations of a coordinated pump-and-dump scheme.

The controversy has escalated into a national issue, with law enforcement agencies gathering evidence, including digital transaction data and promotional content associated with the failed coin. Authorities are also working to freeze assets tied to the project’s developers. Additionally, Interpol has been asked to issue a Red Notice for Hayden Davis, a crypto entrepreneur allegedly tied to LIBRA’s creation and collapse.

The damage to Milei’s administration extends beyond the LIBRA scandal. Public dissatisfaction has been rising steadily since the beginning of the year. The March poll highlights a clear trend of growing negativity around Milei’s leadership, with 58% of citizens disapproving of his presidency. This discontent is rooted in Argentina’s struggling economy, with nearly two-thirds of respondents holding a negative view of the IMF and opposing any new loans. Despite the government’s attempts to frame international agreements as progress, the public remains unconvinced.

Insecurity adds another layer of frustration. Half of Argentinians believe the government has done little to improve public safety. In large urban areas, over 50% report feeling unsafe, and many say the situation has worsened under Milei’s watch. While Milei’s approval rating still hovers at 41.6%, analysts warn that governability could become a serious concern if support drops below 40%.

The LIBRA memecoin scandal has raised serious questions about Milei’s judgment and integrity, as well as the transparency of his administration. The fallout has been swift and severe, with Milei’s approval ratings taking a significant hit and his administration under intense scrutiny. The president has been criticized for his lack of transparency and for failing to disclose his involvement in the memecoin. The scandal has also raised concerns about the regulation of cryptocurrencies and the potential for similar fraudulent schemes to emerge in the future.

In response to the scandal, Milei has emphasized the need for stricter regulations and oversight of the cryptocurrency industry. He has pledged to take steps to restore public trust and ensure that such incidents do not occur again. However, many Argentinians remain skeptical of his promises and are calling for more concrete actions to address the issue. The coming months will be crucial for the president as he seeks to rebuild his public image and address the concerns of his constituents. The scandal has served as a wake-up call for the Argentine government, highlighting the need for greater vigilance and oversight in the cryptocurrency industry.