On the night of Friday, February 14, social media influencer Javier Milei directed his followers to a site that allegedly raised money for small businesses in Argentina through cryptocurrencies. At the same time, digital currency entrepreneur Hayden Davis witnessed the value of the Libra coin, a memecoin he helped launch, starting to rise.
Later, Milei clarified that he was not directly involved with Libra, indicating that he only supported a private initiative that seemed to have good intentions. After a series of events, it was revealed that Davis was not linked to the Argentine government, despite meeting with Milei at the presidential palace in Buenos Aires to discuss Libra's digital infrastructure.
Over the weekend, the value of Libra plummeted, leaving several investors, including Dave Portnoy, baffled. This episode brought political consequences for Milei, whose presidency in Argentina was in crisis. Both Milei and Davis committed to addressing the situation and returning the profits gained from the token to reassure cryptocurrency investors.
Despite the contradictions and confusion generated, prominent members of the cryptocurrency world have pointed out the lack of transparency and possible poor decisions surrounding the Libra case. The situation has been deemed embarrassing for Milei, whose approval ratings have declined. The fall of Libra also had repercussions in the local financial market, reflecting a significant loss in the S&P Merval index.
In an attempt to restore his political image, Milei plans to travel to Washington to meet with Donald Trump. However, the saga of Libra has left many investors with losses and has rekindled concerns about the emotional stability and decisions of the Argentine president.
