The Argentinian President’s Crypto Fiasco: What’s Next?

If you’ve been keeping up with cryptocurrency news, then you have likely seen there is some sort of fiasco going on with the president of Argentina, Milei, and a cryptocurrency known as LIBRA.

But what happened exactly? What does this mean for crypto? We will evaluate the actions of the Argentinian president and what we think will happen next, so keep reading.

The Argentinian President and Libra: The Facts

First and foremost, we want to address the fact that this particular topic has a lot of rumors surrounding it, making it difficult to know what is real and what is speculation. Below, we have listed the only known facts in the case, and then we will discuss the speculations in the next section.

·      Trump has launched his own memecoin, TRUMP, which is currently crashing.

·      LIBRA is a Solana-based memecoin project.

·      President Milei posted about LIBRA on X on February 14^th, stating that LIBRA was designed to boost the Argentinian economy. He deleted this tweet five hours later.

·      The LIBRA creator is Hayden Davis, who also created MELANIA.

·      Davis states he had been making payments to Karina Milei (President Milei’s sister) and bragged about them texts.

·      Shortly after launch, the LIBRA value skyrocketed before early investors started to cash out just a few hours later, causing a rapid decline in value. Individuals who purchased LIBRA on February 14^th lost almost everything.

·      President Milei is now facing possible impeachment over the entire issue.

Just to be clear, LIBRA is a memecoin project just like TRUMP and MELANIA, and it launched on February 14^th, 2025. The Tweet by President Milei was posted shortly before sales began to skyrocket, thus causing people to assume he had something to do with the token. When the value started to fall just a few short hours later, indicating that everything about the memecoin WAS NOT on the up and up, individuals began to speculate that President Milei was involved, which is why he is now facing a possible impeachment.

The Argentinian President and Libra: The Speculations

Now that you have some of the basic facts, it’s time to discuss why people are angry—and it is because of a variety of speculations. We will go through each individually below.

Is President Milei Involved in Libra?

It is currently a widespread theory that President Milei posted about LIBRA because he is receiving a kickback. However, there is presently no proof that he was involved at all. There is currently a task force investigating the president, and they have found that he was not involved in the development at all.

That being said, he did post a tweet about LIBRA on February 14^th. But he claims that he was just sharing the project because he himself had just heard of it. When he later looked further into it, he found that it wasn’t the project he thought it was, and therefore deleted his tweet. He will be heading to court based on these claims.

We don’t think that the president knew he was doing when he tweeted, but his sister, Karina Milei, did appear to accept money from Hayden Davis, the creator of LIBRA, so we think there may be more to the story than what Milei is saying. We will note, however, that Hayden Davis is denying the text where he states that he paid Karina Milei, though screenshots of the texts do exist.

Is LIBRA a Scam?

Right now, it appears as if LIBRA is some sort of scam. That being said, we don’t necessarily think this is true. While we don’t recommend investing in LIBRA, the creator of the project, Hayden Davis, has made himself known and admits that something went very wrong on launch day.

From what we understand, the coin took off immediately after its official launch, and then several early investors decided to cash out. We aren’t sure if this includes Hayden Davis, or just others involved in the ICO, but it doesn’t look good either way. Regardless, there is someone to pursue under the law if this indeed found to be a rug pull scheme, which is why we don’t think it is a scam necessarily, but rather a memecoin gone wrong.

Are TRUMP and MELANIA Scams?

Although Hayden Davis only claims the creation of MELANIA and states he isn’t involved in TRUMP, this issue with LIBRA has brought lots of worries to the surface in regard to memecoins, causing both to lose value.

Although this is all speculation, we don’t have much faith in TRUMP or MELANIA, regardless of who is behind them. It’s important to remember that memecoins are really just gambles, and there is no reason to ever invest in a memecoin other than speculation. So while we aren’t sure whether or not TRUMP and MELANIA are scams, it is possible that they could be.

What Does This Mean for Crypto Prices?

Unfortunately, as is usually the case whenever a large number of people lose a lot of money in crypto, this could indicate we are heading for a bear market. Not just because individuals are hesitant to invest but because they don’t have the money to do so right now.

While we do expect the market to bounce back, especially because Trump is still president, we think there may be a prolonged downturn as this all blows over.

Are All Memecoins Rug Pull Schemes?

In many of the articles about the President Milei kerfuffle, it is mentioned that almost all memecoins are rug pull schemes. Of course, individuals use this statement to argue that DOGE isn’t a rug pull, but we caution all individuals against investing in memecoins.

As we mentioned above, all memecoins have value based on speculation. While this doesn’t make them all scams, it makes them extremely risky investments. Add that on top of the fact that numerous memecoins are rug pull scams, and we just think these aren’t a gamble worth taking. You are better off investing in almost anything else.