In February 2025, Argentine President Javier Milei promoted a new cryptocurrency token named $Libra, aiming to stimulate economic growth by funding small businesses and startups. Within minutes of his endorsement, $Libra’s value surged from $0.000001 to $5.20, attracting thousands of investors eager to capitalize on the sudden opportunity. However, this rapid ascent was short-lived. The token’s creators, holding 70% of the total supply, sold their holdings once the price peaked, causing the value to plummet by 85% within hours. By February 15, $Libra’s market capitalization had fallen from $4.6 billion to just $162 million, leaving investors with substantial losses. Research firm Nansen reported that 86% of traders lost money, totaling an estimated $251 million, while the remaining 14% collectively profited $180 million. This event, now referred to as ‘Cryptogate,’ has been described as the ‘first big scandal’ of Milei’s presidency. (en.wikipedia.org) The aftermath has been marked by political turmoil. Opposition parties have called for Milei’s impeachment, accusing him of unethical behavior and questioning his involvement in the promotion of $Libra. In response, Milei deleted his initial promotional posts and claimed he was unaware of the project’s details, stating that his endorsement was a personal action and not linked to his official capacity. (forbes.com) Legal actions have followed. Argentine lawyers, led by political opponent Claudio Lozano, filed over 100 fraud complaints against the president, prompting an investigation by an Argentine judge. The focus has been on the alleged manipulation of $Libra’s price and the rapid withdrawal of funds by its creators. (forbes.com) The scandal has also attracted international attention. U.S. crypto entrepreneur Hayden Davis admitted to participating in the launch of $Libra and MELANIA, another memecoin tied to the First Lady that briefly hit a $2 billion market cap before crashing. Davis detailed a scheme known as ‘sniping,’ where insiders or bots swiftly buy up newly launched tokens at ultra-low prices before the general public can react, driving up demand and price, only to sell at a massive profit. (forbes.com) The incident has raised broader concerns about the role of political figures in financial markets and the risks associated with volatile digital assets. It underscores the need for greater transparency and regulation in the cryptocurrency space to protect investors and maintain market integrity. (okx.com)
Investor Identification, Introduction, and negotiation.
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