Argentina President Javier Milei's crypto fiasco triggers 94% crash in $LIBRA, costs investors $5 billion; opposition calls for his impeachment

Just imagine, the President of a country endorses a cryptocurrency from his X (Twitter) account. After getting legitimacy from such a giant political figure, investors start investing in it in hordes.

The crypto's market cap rises to $5 billion.

The President takes a U-turn and deletes his tweet.

मीमकॉइन $LIBRA में ₹39,000 Cr स्वाहा

अर्जेंटीना प्रेसिडेंट की पोस्ट से कोहराम

इतिहास का सबसे बड़ा क्रिप्टो पंप & डंप

जानिए पूरी डिटेल्स @AshishZBiz से #Memecoin #Libra #ArgentinaPresident #Crypto #CryptoMarket pic.twitter.com/J8RIoA6ETk

— Zee Business (@ZeeBusiness) February 17, 2025

But by that time, it's too late, and the damage is done.

Retail investors have lost an estimated $5 billion in a possible pump and dump scam.

In an attempt to save his image, the president announces setting up a probe into the matter.

But this time, it's too late for him. The opposition latches on to the opportunity, calling for impeachment proceedings against the President. 

The matter is of Argentina, where President Javier Milei endorsed a cryptocurrency, $LIBRA, through a tweet from his official account having 3.8 million followers.

“This private project will be dedicated to encouraging the growth of the Argentine economy,” he wrote, with a link to the $LIBRA cryptocurrency project. 

At the time of tweeting, little did Millie know that the meme coin had been launched just a few hours ago.

Cryptocurrency yearns for endorsement from such a big political figure.

No sooner did retail investors start investing in hordes.

The meme coin that was valued at nearly zero a few hours before suddenly skyrocketed to $5.

The meme coin at the top of public interest was estimated to have a $5 billion market cap (over Rs 40,000 crore value).

What was interesting was that one of the biggest losers in the momentary rise of $LIBRA was Donald Trump's Mimecoin, $TRUMP, which lost its value by an estimated $5 million. 

But the meme coin LIBRA that rose like a phoenix from ashes came down crashing like a falcon that has hit a hard surface.

Milei deleted his tweet and made a fresh one, writing, “I was not aware of the details of the project and after having become aware of it I decided not to continue spreading it.” 

It turned the sweet dream of retail investors into a nightmare. Moments earlier, those who were patting on their backs for hitting a fortune had suddenly hit the roadblock.

According to data from DexScreener, the price of $LIBRA, fell to $0.50 in a few hours. The meme coin's market cap was wiped out by more than $4.5 billion. 

According to a section of experts, the case is one of the sharpest declines of wealth in the history of cryptocurrency.

In a cover-up, the President's office said in a statement: "President Javier Milei has decided to immediately involve the Anti-Corruption Office to determine whether there was improper conduct on the part of any member of the national government, including the president himself.”

But with retail investors losing fortunes, Milei's fortunes don't seem to be better.

Argentina’s political opposition was up in arms. Union for the Homeland, the coalition opposition of Argentina, criticised Milei, announcing on Saturday it would move forward with a request for impeachment against the President.

Pablo Sabbatella, an expert on crypto security in the US, told a channel that he saw accounts that earned more than $4 million in 2 hours, and one that earned up to $87 million with the sale.  

While the perpetrators of the scam may be the biggest beneficiaries, retail investors and President Milei are at the receiving end.