What is Milei’s “Libragate” controversy?
An X tweet by Argentine President Javier Milei resulted in a crypto controversy threatening his political position. It all started when Milei endorsed the token LIBRA on X, describing it as a project focused on boosting economic growth by supporting small businesses and startups.Â
Given Milei’s 3.8 million followers and the credibility he brings in as a president, the token’s value surged from near zero to $5, briefly reaching a $4-billion market capitalization.Â
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.Â
