"Milei's Crypto Endorsement: $4B Surge, $0 Crash, Scandal Erupts"
1min read Argentine President Javier Milei found himself at the center of a crypto controversy known as "Libragate," which threatened his political position. The scandal began when Milei endorsed the token LIBRA on X, describing it as a project focused on boosting economic growth by supporting small businesses and startups. Given Milei's 3.8 million followers and his credibility as a president, the token's value surged from near zero to $5, briefly reaching a $4-billion market capitalization. However, the endorsement was met with public backlash, leading Milei to delete the post just hours later. This triggered a massive sell-off, causing LIBRA's value to drop rapidly and wiping out millions in investor funds. The sudden rise and fall of LIBRA raised concerns over potential manipulation and the risks of political figures influencing volatile crypto markets.
The Viva La Libertad Project, associated with the LIBRA token, includes Milei's popular catchphrase "La Libertad" in the domain name. The project's stated purpose was to channel funding for Argentine investors and citizens in a decentralized manner. Its token distribution earmarked 50% tokens for Argentina's growth, 30% for liquidity, and 20% for treasury.
Hayden Davis, a 28-year-old American crypto developer and CEO of Kelsier Ventures, played a significant role in the launch of the controversial memecoin LIBRA. He claimed to be an adviser to Milei, though the latter's office denied any such connection. Davis was also involved in the launch of Melania Trump's memecoin, MELANIA. However, KIP Protocol denied their involvement in a statement released on Feb. 24 via its X handle. The company stated that it was invited by Mauricio Novelli on Feb. 13, 2025, for support in financing Argentine small and midsize enterprises but had nothing to do with the token's creation.
Dave Portnoy, founder of Barstool Sports, said he was approached by someone connected to the LIBRA memecoin launch to discuss potential promotional opportunities. A crypto firm headed by an anonymous "Meow" was also involved in the launch.
Argentine President Javier Milei is facing serious accusations following his endorsement of the cryptocurrency LIBRA. Critics have labeled the incident a potential rugpull scam, alleging that 