Javier Milei's publication about a digital asset resulted in an as-yet indeterminate economic damage for users and shook the cryptocurrency world. What occurred has generated concern in the industry, as companies fear losing the trust they have spent years building. This incident highlighted the risk of speculative projects that can discredit the entire sector.
Juan Pablo Fridenberg, director of Public Affairs of the company, emphasized the importance of not losing sight of the interesting advancements being made in the crypto space in Argentina. He explained that the crypto industry collaborates with different state bodies in a framework of public-private cooperation to protect investors.
On Friday, a publication by Milei caused an uproar in the crypto industry by promoting a cryptocurrency project called $LIBRA. In a few hours, the price of this coin skyrocketed to a value exceeding $4.5 billion. However, the price quickly collapsed, leading Milei to dissociate himself from the project.
This type of behavior is known as "pump and dump" and is a fraud in which the value of a cryptocurrency is artificially inflated to attract investors, only to withdraw the funds and leave many harmed. This incident not only affected the image of the industry but also raised doubts about the credibility of crypto projects in general.
Since Milei took office, the National Securities Commission has been working on regulating the crypto sector. Starting in April 2024, only companies registered in the Register of Virtual Asset Service Providers can operate in the cryptocurrency business, following the FATF guidelines against money laundering.
Established companies in the crypto field support these regulatory measures but also express their concern about events like the one promoted by Milei, which can damage the sector's reputation as a whole. Julián Colombo, director of Bitso Argentina, lamented that episodes like these contribute to stigmatizing cryptocurrencies as scams, despite the advantages and benefits they offer.
The lack of transparency and the opaqueness in such projects wave a red flag in the cryptocurrency industry. Experts and developers agree that there needs to be greater regulation and oversight to protect investors and prevent situations like the one that occurred with the $LIBRA project. The crypto community hopes for greater clarity in communication and more responsibility from those promoting such initiatives.
