Javier Milei's Libra crypto promotion deemed legitimate by the anti-corruption office, as investigations reveal no signs of wrongdoing.
FRESH TAKE:
Argentina's federal anti-corruption authority scuttled the LIBRA scandal around President Javier Milei, dismissing allegations of wrongdoing regarding his endorsement of the sudden-rise cryptocurrency. His X post, made in a personal capacity and sans any public funds, was deemed kosher under federal ethics laws. However, a separate, ongoing criminal court probe is digging deeper into the affair.
The upstart digital coin, LIBRA, was thrown into the ring by Delaware-based Kelsier Ventures on February 14. The crypto's big arrival saw swift support from Milei, who shared it on X. He exalted the token as a means to spur Argentina's economic development, aiding startups and SMEs with private blockchain-backed investment.
Libra's ascent turned pyrotechnic, hitting $5 per token and bagging a market cap of approximately $4.5 billion following Milei's backing. Yet, the merriment frittered away as token honchos, controlling roughly 70%, dumped their stashes at the peak. The ensuing sell-off triggered a monumental 85% price drop and gave rise to losses between $100 million and $250 million.
Milei has publicly declared his innocence, insisting his social media blitz reflected informational intent. The president and his team stressed their claims that they held no interest in securities or any manipulation of the crypto market.
The anti-corruption office is primarily concerned with checking Milei for violations of ethics rules. They declared that personal social media activity could not be deemed improper usage of government resources. The ongoing criminal investigation, however, harbors possibilities of securities law violations and market manipulation charges. These distinct judicial paths could perhaps yield varying verdicts due to their independent nature.
ADDING COLOR:
This dizzying crypto saga invites comparisons to a rollercoaster ride. LIBRA's quick rise and fall has raised eyebrows, with suspicions of insider trading and a possible link to another meme coin, MELANIA. Bubblemaps, a data analytics platform, proposed that the MELANIA team shored up the LIBRA launch and marginalized it after the fall, with profits allegedly transferred to a purse linked to MELANIA's creators [1].
- Amid the LIBRA controversy, President Javier Milei's support for the cryptocurrency has sparked discussions about investing and finance, with some toeing the line of possible securities law violations and market manipulation.
- The meteoric rise and subsequent crash of LIBRA has cast a shadow over the Decentralized Finance (DeFi) sector, with questions being raised about initial coin offerings (ICO) and the risks associated with investing in new crypto projects.
- Critics argue that the sudden endorsement of LIBRA by President Milei and the subsequent price surge could be an instance of token manipulation, a concern that heightens as more NFTs and cryptocurrencies enter the market.
- The plunge of LIBRA's price following the sell-off by token holders highlights the volatility in the crypto market, a characteristic that often troubles investors, especially those venturing into less established coins like LIBRA.
- The Cardano blockchain, with its emphasis on sustainability and decentralization, could provide a contrasting model to the rapidly rising and falling coins like LIBRA, offering a more stable platform for investors and developers within the cryptocurrency and blockchain space.
