Rarely a president in the year has been a direct protagonist of a self -inflicted financial disaster. The Episode of Naked $ Libra The shortcomings of a governance model.
Economic history is plagued by episodes where speculative euphoria, deregulation and opportunism are combined to trigger a crisis of great magnitude. However, Rarely a president in the year has been a direct protagonist of a self -inflicted financial disaster. The African President Toadéra reminds us, with $ Car, the cryptocurrency of the Central African Republic.
The $ Libra scandal, the digital currency launched under the endorsement of Javier Milei, crudely exposes the intersection between financial ignorance, market populism and reckless commitment to instruments without support. What has not only generated millions of losses for acolytes of the lla and offset investors, but has also questioned Milei’s ability to understand the basic mechanisms of the markets that claims to dominate.
Brief chronology of the phenomenon and analysis of the collapse of $ Libra
- Advertisement: At 10:01 PM UTC, Milei made a publication in X announcing that $ Libra would be launched to “finance small projects to boost Argentina’s economy.”
- Doubts and certainty: People weren’t sure he was serious. Some thought his “X” account was hacked. Others assumed that it was another “discursive sorcery.” But then, many politicians from their own party confirmed that it was real, so, as usual, the investors and acolytes of LL (La Libertad progresses) got into without hesitation. In a matter of minutes, $ LIBRA reached a market capitalization of US $ 4,600 million.
- Launch and concentration: As with the African currency, 82% of the offer was concentrated in a single group and in minutes it reached a market capitalization of US $ 4,600 million.
- Extravagant: Everything was grotesque, as are the meme coins or “peanut coins.” There was no white paper, to Tokenomics, or protections for investors, only an elementary and depressing appearance website that was linked to a Google form.
- The thymus and collapse: In just 3 hours, people with privileged information earned US $ 87.4 million, while the capitalization of $ Libra fell below US $ 600,000.
- Collateral damage of shipwreck: $ Trump lost $ 500 million capitalization, and the meme coins as a whole suffered a higher loss au S6 S6 billion.
- Damage to Milei’s reputation: Argentine President Javier Milei literally ended the MEME coins market in a couple of hours, and could also have incinerated his reputation along with him.
The presidential irresponsibility and the role of Milei:
- Your promotion in social networks: At 10:01 PM UTC, Milei announced the launch of $ Libra, which generated a massive speculative wave.
- Delivery of tweet and disregard: Milei eliminated his publication and excused himself with a leakage forward, a predictable message of contempt for the “political caste.”
- Journalism, consultants and investors: At an unusual schedule, in moments I began to answer consultations from all over the world until the 1am Argentine time, mainly from the US.
- Some comments from affected investors: An American directly snapped: “Milei did all his campaign on how to stop corruption and at this time he uses his position to make a massive theft?”
- Crypto community reactions: Justin Sun urged Milei to assume responsibility and return the funds. Justin Sun is a blockchain entrepreneur, founder of Tron, one of the largest decentralized (DAO) ecosystems in the world, and an advisor to Huobi Global, a global cryptocurrency exchange.
- Distrust in the crypto market: Retail traders lost fortunes, weakening the credibility of the sector.
- Effect on the presidential image: Milei’s management is marked by his negligence and financial ignorance.
- Investigations ongoing: Bonds with serial scammers such as Arunkumar Sugadevan and their connection with other fraudulent operations were revealed.
The $ Libra episode not only nakes the shortcomings of a governance model based on discursive pyrotechnics and improvisation, but also evidences the danger of trusting leaderships that confuse conviction with obstinacy.
In a context where financial stability is key to arriving at an agreement with the IMF, increasing investment and beginning the growth, the intervention of a head of state in speculative operations of doubtful legality is not only a clumsiness, but a blow against the Economic order. If Milei really aspires to receive a Nobel Prize in Economics, he should begin by understanding the basic principles of the discipline, because history does not reward the presenter, but expose them. And in this case, the exhibition has been devastating.
Director of Esperanza Foundation. Postgraduate professor at UBA and private universities. Master in International Economic Policy, Doctor of Political Science, author of six books.
Source: Ambito
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