Argentine President Javier Milei Denies Involvement in LIBRA Memecoin ‘Pump-and-Dump’
Argentine President Javier Milei finds himself at the center of a scandal dubbed ‘Libragate’ after sharing information about the LIBRA token on X (formerly Twitter), which sparked massive interest followed by a sharp collapse in its value. Accused of orchestrating a ‘pump-and-dump’ scheme, Milei staunchly defends himself, asserting, ‘I didn’t promote, I shared.’ This distinction is crucial to him as he faces fraud charges and a threat of impeachment.
A Dizzying Fall and Accusations of Manipulation
The LIBRA token, native to the Solana blockchain, reached a market capitalization of 4.56 billion dollars on February 14, immediately after Milei’s post. However, the swift deletion of his post, coupled with insider selling, led to an immediate 94% crash, sparking outrage. Milei, nonetheless, denies any responsibility, stating, ‘I acted in good faith and took a hit.’ He insists that he had no affiliation with the company behind the project and was unaware of the technical details.
An Indirect yet Admitted Involvement of the Argentine President
Milei admits to meeting with representatives from KIP Protocol in October 2023, a company specializing in web3 payment infrastructure, but claims that no discussions regarding the launch of a token took place. KIP also denies any involvement in the creation or management of the LIBRA token, presenting themselves solely as a technical provider.
Foreign Investors Mainly Involved, According to Milei
Addressing concerns about investor losses, Milei downplays the impact in Argentina:
Perhaps a maximum of four or five Argentines lost money. The majority are Chinese and American investors.
He describes LIBRA investors as volatility-focused traders who are aware of the risks. ‘Those who participated knew what they were doing,’ he claims, absolving the government of any responsibility: ‘The state didn’t lose a peso.’
A Defense Tinged with Technoptimism
Milei, known for his enthusiasm for financial technologies, justifies his sharing as support for initiatives that promote funding for tech entrepreneurs:
I am an unwavering technoptimist. Any initiative that enhances funding for tech entrepreneurs interests me.
However, he acknowledges a lesson to be learned from this affair: ‘I have to understand that after becoming president, I can no longer act as before. I have to raise my filters and be less accessible.’
