Milei Withdraws LIBRA Support: Due Diligence Concerns

Argentina's President Withdraws LIBRA Support

Argentina's President Javier Milei recently withdrew his support for the LIBRA meme token, a project he had previously endorsed. He publicly acknowledged a lack of due diligence before expressing his initial support via Twitter, later deleting his promotional tweets. This admission underscores the importance of thorough research before endorsing any cryptocurrency project.

Key Takeaways:

• President Milei rescinded his support for LIBRA after its value plummeted by 85%.
• This incident follows prior controversies involving Milei's promotion of CoinX, a project alleged to be a Ponzi scheme.

The LIBRA token, associated with the Viva La Libertad Project, aimed to bolster Argentina's economy. However, reports of the project team’s liquidation led to the 85% value drop. Analysis reveals that 82% of the token supply was concentrated in a small number of wallets, indicating centralized control and raising red flags.

In a statement, President Milei clarified his lack of involvement and the absence of due diligence:

“A few hours ago I posted a tweet…supporting a supposed private enterprise with which I obviously have no connection whatsoever,” Milei stated. “I was not aware of the details of the project and after having become aware of it I decided not to continue spreading the word (that is why I deleted the tweet).”

Milei also addressed criticism, stating:

“To the filthy rats of the political caste who want to take advantage of this situation to do harm…every day they confirm how vile politicians are, and they increase our conviction to kick them in the ass.”

Prior Crypto Controversy: CoinX

This is not Milei's first encounter with controversy involving cryptocurrency projects. In late 2021, he promoted CoinX on Instagram, presenting it as a solution for Argentinians battling inflation. Protos reported that CoinX was later alleged to be a Ponzi scheme.

CoinX promised high returns through AI-powered trading, but investors reportedly did not receive the expected profits. Consequently, the National Securities Commission ordered CoinX to cease operations. Investors subsequently sued Milei, seeking damages estimated at $300,000.

Codeum: Mitigating Crypto Risks

Incidents like the LIBRA and CoinX controversies highlight the critical need for thorough due diligence in the cryptocurrency space. Codeum, a blockchain security and development platform, offers a suite of services to mitigate such risks:

• Smart contract audits
• KYC verification
• Custom smart contract and DApp development
• Tokenomics and security consultation
• Partnerships with launchpads and crypto agencies

By leveraging Codeum’s expertise, projects can build trust, transparency, and enhance their security posture, reducing the risk of financial losses for investors.