Milei's Crypto Endorsement Implodes: Impeachment Looms

Argentina President Javier Milei faces potential impeachment over the failed promotion of a cryptocurrency, $LIBRE, which crashed shortly after its endorsement. The opposition in the National Congress has charged Milei with advancing a crypto asset that subsequently crashed, leading to public backlash and political tension.

The controversy began when Milei endorsed the obscure $LIBRE cryptocurrency through his X platform posting on Friday evening. The value of $LIBRE coins reached almost $5 during this period. However, the cryptocurrency's value dropped sharply to below $1 within hours, raising suspicions of a "rug pull" tactic, where developers create false token value through promotion activities before unloading their assets to cause market crashes.

The opposition, led by Representative Leandro Santoro, seeks to impeach President Milei, citing international embarrassment and public demands. The Argentine Presidential Office has asked the Anti-Corruption Office to investigate whether any government member, including President Milei, was involved in any improper activities related to the KIP Protocol project. The investigation will determine if any company or individual violated criminal laws.

President Milei has denied any ties to the cryptocurrency, stating that he removed the post from his X platform once he received better information about the situation. He admitted his initial ignorance about the project but decided to terminate his backing after learning the facts. The tense political atmosphere and eroded public confidence have resulted from this incident, with high anticipation among investigators, the public, and market investors awaiting the outcome of the investigation.