(Bloomberg) — President Javier Milei advertised a crypto token he said was meant to help local Argentine businesses, but his support was met with widespread concern about a potential scam and he deleted the post.
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Milei initially promoted the LIBRA token late Friday in a post on X, saying the money raised would go to help small and medium-size companies in Argentina and stressing that the project was privately run. In a text message, he added that he would reap no personal financial benefit from the venture.
The token’s name appeared to be in reference to Milei’s political party, La Libertad Avanza, or his libertarian roots as an economist. Milei told Bloomberg he met with the company behind the coin, KIP Protocol, months ago. The company’s website includes a blog post featuring a selfie with its co-founder and the Argentine president giving a thumbs-up dated Oct. 20.
The token’s launch was not handled by KIP, according to a post on the company’s X account. “We did not profit a single cent from today’s activity,” the company added. KIP did not respond to several requests for comment.
Argentines immediately began to panic over whether the president’s social media was hacked or if Milei himself had been duped by crypto scammers.
Community notes published on X — the social-media platform owned by Milei’s ally Elon Musk — cautioned people against the coin. Crypto scams, often called “rug pulls,” are rife on social media.
Milei deleted the initial post five hours later, saying he was “not aware of the details of the project and after having become aware of it I decided not to continue spreading the word.”
Despite being a Wall Street darling, Milei has so far struggled to lure foreign investment into Argentina even as his government crushes inflation and passes business-friendly reforms. He still hasn’t dismantled the complex currency controls his administration inherited more than a year ago, though Argentina’s economy is expected to grow again in 2025 after two years of punishing recession.
Even before Friday’s token drama, headwinds were building in Buenos Aires. US President Donald Trump’s tariffs stand to disproportionately hit Argentina, while Nissan is cutting back car production and Mercedes-Benz is leaving the country after more than 70 years. Argentina’s economic lifeline, the Rio Parana that carries most of the country’s farm exports, faced a setback after Milei’s government canceled an auction to dredge it deeper after receiving just a single bid as ships struggle to navigate narrow waters.
