Argentina’s president retracts support for cryptocurrency after market turbulence and allegations of economic manipulation.
Milei’s Crypto Endorsement Sparks Market Chaos
Argentina’s President Javier Milei recently promoted the cryptocurrency Libra, suggesting it could aid the country’s struggling economy. Following his endorsement, the coin’s value surged over 2,000% within 40 minutes before plummeting.
Critics Call It an Unprecedented Scandal
Opposition lawmakers labeled the incident a “scandal without precedent.” The sharp rise and fall of Libra led to concerns about potential market manipulation and insider trading, prompting public outcry.
Milei Orders Investigation into Crypto Crash
In response to the backlash, Milei announced an official investigation. He emphasized that any fraudulent activities related to Libra’s volatility would face legal consequences.
Comparisons to Trump-Linked Crypto Failures
The incident draws parallels to cryptocurrencies linked to former U.S. President Donald Trump. Those tokens saw early investors profit while late buyers suffered cumulative losses of up to $2 billion.
Impact on Argentina’s Crypto Regulations
This controversy may influence Argentina’s regulatory stance on cryptocurrencies. The government faces pressure to implement stronger oversight amid rising crypto adoption in the nation.
Public Reactions and Economic Implications
Many Argentinians expressed concerns about financial instability. While some crypto enthusiasts remain optimistic, others fear such volatility could undermine confidence in digital assets.
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