Economist Javier Milei and his team surprised everyone by unexpectedly reversing their position and withdrawing support for a token, deleting all related social media posts. This decision caused investors confident in their backing to feel betrayed, triggering a wave of massive sell-offs that worsened the situation, affecting the token market's stability.
In a subsequent statement, Milei accused the project's sponsors of misconduct, calling them scammers, which generated a catastrophic loss of trust. He assured that he would not personally benefit from the funds and proposed to reinvest the money under his control in the project and burn the entire purchased supply.
A project advisor, Hayden Mark Davis, went out to clarify Milei's involvement and subsequent withdrawal of support. Davis insisted that Milei's associates guaranteed his public backing and denied allegations of misconduct by the sponsors. He highlighted the importance of trust in cryptocurrency investments as the fundamental basis of their functioning.
The scandal surrounding the cryptocurrency $LIBRA involves Milei, Davis, and Julian Peh, founder of KIP Protocol. Following Milei's promotion and the collapse of $LIBRA, Peh pointed to Davis, who went out to defend himself and present his side of the events. Davis emphasized that the decision to withdraw support was made without prior notice, contradicting previous guarantees, but committed to continuing to offer transparency and updates as the situation unfolds.
Amid these disputes and counter-allegations, the investing community is affected by instability and a lack of trust in the project, casting doubt on the viability and future of the token in question.
