Argentina’s president, Javier Milei, is facing a corruption probe over his promotion of a meme coin, which has led to a scandal dubbed “cryptogate.” The controversy involves a mix of characters, including a high-profile US influencer and a crypto developer who helped launch the coin.
Meme coins are a type of cryptocurrency that are often based on internet memes or viral moments. They have been criticized as digital Ponzi schemes that enrich insiders at the expense of retail investors. However, some argue they could be early indicators of ways in which the internet can revolutionize financial transactions.
President Milei promoted the meme coin $LIBRA, which saw its price surge after launch but then collapsed, characteristic of a “rug pull” – a phenomenon where insiders dump their holdings, causing losses to new investors. The incident has led to dozens of criminal complaints and calls for impeachment.
A US crypto developer, Hayden Davis, is at the center of the scandal, saying that meme coins are rigged games that benefit a small group of people. He also claimed to have helped launch Melania Trump’s meme coin, which underwent a similar price trajectory. Another key player is Dave Portnoy, an online influencer who promoted the $LIBRA coin but lost money on it.
The incident has raised questions about the reputation of President Milei and the administration’s economic policies, particularly at a time when foreign investors are watching closely. Meme coins’ track record should serve as a cautionary tale for investors and creators alike.
Source: https://apnews.com/article/argentina-milei-meme-coins-crypto-melania-e83b5ffd61b1dbc9e7c1272096d39aaa