The president of Argentina, Javier Milei, is examined after a cryptocurrency that he approved on social networks, resulting in significant losses for investors. Friday evening, Milei shared a tweet promoting a little -known part, $ balances, saying that it would help stimulate the economy and support small businesses in Argentina.
The value of the part has soared almost instantly, reaching a market capitalization of $ 4.4 billion. However, in a few hours, the value of the cryptocurrency dropped at less than $ 1, causing heavy financial losses. Many investors, which have seen their investments decrease in just a few hours.
Milei quickly removed the tweet and later explained that he was not aware of the details surrounding the medal before promoting it. He said that once he had read the situation, he withdrew the post and moved away from the project.
The incident has raised concerns about a potential “carpet shooting” scam, where developers artificially inflate the value of a room before selling their assets, leaving investors with worthless tokens. Despite the accident, the room still has a market value of $ 250 million.
According to Reuters, opposition legislators in Argentina have suggested that Milei could face an indictment trial at the Congress for the incident, while the country’s Fintech Chamber of the country recognized the possibility of an unfair game.
The case drew attention not only to Milei’s participation, but also to the wider risks of the investment of cryptocurrencies, stressing the speed with which the market can go from the media threw in the event of a disaster.
