$LIBRA: Milei under scrutiny after the controversy

What is $LIBRA?

$LIBRA is a cryptocurrency that emerged as part of the "Viva la Libertad" project. It was widely promoted by Argentine President Javier Milei, although he has stated that he merely spread the word and did not promote it. Behind its development are the companies KIP Protocol, led by Julian Peh, and Kelsier Ventures, owned by Hayden Mark Davis. This cryptocurrency quickly gained notoriety in the markets, seeing an explosive increase in its value. However, shortly after, it experienced a drastic drop, severely affecting numerous investors.

Viva Libertad

The Viva la Libertad Project is a recently launched private initiative aimed at boosting the Argentine economy by funding small projects and local businesses. The idea is to support entrepreneurs and contribute to the country's development. $LIBRA experienced an exponential rise in its price after being mentioned by the Argentine president. However, shortly after, the developers withdrew a large amount of tokens, causing the value to plummet drastically. This situation is known as a rug pull, where the creators abandon the project, taking the funds with them.

Milei washes his hands

Milei has insisted that he did not promote the cryptocurrency but merely spread the word on his social media. According to him, his intention was to give visibility to the project. He has denied any responsibility for the losses suffered by investors and claimed that he did not receive any payment for promoting $LIBRA.

The president has criticized the opposition for calling for his impeachment and has defended his stance as a techno-optimist, highlighting his desire for Argentina to become a technological leader. On the other hand, Milei has acknowledged the need to "build walls" to prevent situations like this from happening again and has mentioned the importance of greater regulation in the crypto sector.

The reality is that although the Argentine president has tried to distance himself from the failure of $LIBRA, the scandal remains a controversial topic and has generated a significant amount of criticism and concerns both nationally and internationally.

What are the repercussions?

• Investigation and Scandal: The Argentine government has launched an urgent investigation into the launch of $LIBRA, promoted by President Javier Milei. The cryptocurrency collapsed hours after its launch, generating accusations of fraud and calls for impeachment.
• Economic Impact: Argentine stocks fell by up to 6% on Wall Street due to the tension generated by the case. Additionally, Argentina's country risk increased, reflecting economic and political instability.
• Regulatory Measures: In response to the scandal, the government is advancing regulations for crypto wallets and virtual asset providers (PSAV) to prevent future fraud.

Impact on the Image of Solana and Cryptocurrencies

The $LIBRA scandal has significantly damaged investor confidence both within and outside Argentina. The perception of instability and lack of regulation has negatively affected the image of cryptocurrencies in general. Although $LIBRA is not directly linked to Solana, the use of a Solana-based platform for this cryptocurrency has raised concerns about the security and regulation of blockchain platforms. The crisis has led to calls for greater regulation and transparency in the crypto sector, aiming to protect investors and improve the image of cryptocurrencies.

$LIBRA is a recent example of how the promotion of a cryptocurrency can attract numerous investors and, at the same time, lead to severe consequences when its value collapses. It is crucial for investors to do their own research and exercise caution before investing in digital assets.

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