Q&A Blog: President Milei, $LIBRA, and the Future of Argentina’s Economy

Q1: What happened with President Mileis´ $LIBRA cryptocurrency in Argentina?

On Friday, Jan. 14, 2025, Argentine President Javier Milei promoted a cryptocurrency called $LIBRA on his social media, claiming it was part of the “Viva La Libertad” project to finance small businesses. However, it was later revealed that $LIBRA was a memecoin—an asset with little or no real use, often driven by speculation and associated with financial scams.

Thousands of people rushed to buy it, but early investors quickly sold off their holdings, causing the coin’s value to crash. This type of scam, often called a “rug pull,” is common in online crypto memecoin spaces—but it’s highly unusual for it to be tied to a world leader’s social media endorsement. The $LIBRA memecoin was developed on the Solana blockchain which is important to know.

What exactly was discussed behind closed doors regarding $LIBRA? How deeply was President Javier Milei involved, and what implications might this have for his long-term credibility? Furthermore, how will this scandal impact Argentina’s local crypto industry?

This isn’t the first time Milei has been linked to a questionable cryptocurrency initiative. Previous allegations suggest a pattern of engagement with dubious projects, raising concerns about due diligence and regulatory oversight. But this story extends beyond Argentina. It speaks to a broader phenomenon in Latin America—one where little-known figures can infiltrate political and business circles, leveraging influence to push crypto ventures with uncertain foundations.

The precedent is clear. In 2021, Jack Mallers played a key role in El Salvador’s high-profile adoption of Bitcoin, a move that remains contentious today. Now, we’re witnessing a similar dynamic unfold with Eike Batista in Brazil. These instances highlight the growing intersection of cryptocurrency and political power in the region, often driven by figures whose long-term intentions remain uncertain.

As the $LIBRA scandal continues to unfold, stakeholders in Argentina’s financial and political sectors must grapple with its implications. Will this case prompt greater regulatory scrutiny over crypto projects? Or will it serve as yet another example of the volatile and unpredictable nature of Latin America’s digital asset landscape? One thing is certain: the conversation is far from over.

This block will dive deeper on Solana and the dark market beloved by libertrains around the globe.

Q2: How has Argentina reacted to the scandal?

The scandal has triggered widespread investigations. President Milei has promised a full inquiry, and Argentina’s Congress, judiciary, and legal experts are all involved. Although impeachment discussions have begun, they are unlikely to succeed. International tech journalists are also investigating who was behind $Libra and how the situation unfolded.

Q3: How did the scandal unfold?

Once the nature of $LIBRA became clear, Milei deleted his post and distanced himself from the project. This led to a massive sell-off, causing the token’s value to plummet by 93%, from a market cap of US$ 4.5 billion to just over US$ 300 million. Investors who bought into the hype suffered losses, while those behind the project likely profited.

Q4: Who was behind the creation of $LIBRA?

Two key figures linked to $LIBRA are Hayden Davis, CEO of analytics firm Kelsier Ventures, and Julian Peh, chairman of KIP Protocol.

snapshot no. 01: Hayden Davis and Argentine President Javier Milei

snapshot no. 02: Julian Peh and and Argentine President Javier Milei

Davis admitted in a video that he raised approximately US$ 113 million with the project. Peh, meanwhile, had previously met with Milei several times during the past year, making it harder for the president to deny involvement. It also became clear that the sister of the Argentinian president had been involved in the preparation of $LIBRA for a long time, organizing marketing and acting as a capital collector. She is Javeir Milei's closest confidante and constant advisor, both nationally and internationally.

In the wake of the $LIBRA token’s fallout, KIP Protocol CEO Julian Peh took to X to confirm the company’s involvement in the project. Peh assured that “the funds are still on chain and not a single SOL will be moved.” Since then, KIP Protocol has issued two blog posts clarifying its role and addressing recent statements made by Argentina’s government.

On February 15, Argentina’s presidential office released a statement naming both KIP Protocol and Peh, detailing an October 19, 2024, meeting between President Javier Milei, his spokesperson, Peh, and Tech Forum co-founder Mauricio Novelli. The statement confirmed that KIP Protocol was an official sponsor of the Tech Forum Argentina trade show.

While KIP acknowledged Peh’s meeting with Milei in October, it refuted key claims in the government’s statement. The company clarified that it never mentioned the Viva La Libertad project by name during the meeting and did not discuss specific initiatives or any token launch with the president at that time.

In a blog post dated February 24, KIP Protocol stated that Novelli invited the company on February 13 to assist in managing the financing initiative for Argentinian small and medium-sized enterprises (SMEs). However, the company emphasized that no work had been carried out in this regard, and it was not involved in the token launch nor did it profit from it.

KIP Protocol also made two separate announcements related to Argentina in the weeks leading up to the $LIBRA launch, neither of which explicitly mentioned the token. On January 6, the company claimed it was invited to join the City of Buenos Aires’ blockchain committee. On February 12, it announced an agreement with the National Technological University in Buenos Aires.

However, on February 16, Buenos Aires’ Secretariat of Innovation and Digital Transformation denied the existence of a city-backed blockchain committee and any affiliation with KIP Protocol. Additionally, a university representative informed local media that while there had been email exchanges with KIP, no formal agreement had been signed.

As questions continue to surface regarding KIP Protocol’s involvement in Argentina’s blockchain initiatives, the company maintains that its role in the $LIBRA project was minimal and has taken steps to clarify its position amidst the controversy.

Hayden Davis, co-creator of the now-collapsed $LIBRA meme coin and CEO of Kelsier Ventures, is at the center of a growing controversy. According to a CoinDesk report, Davis allegedly boasted in text messages about controlling Argentine President Javier Milei by making payments to his sister, Karina Elizabeth Milei.

“I control that n***a,” Davis reportedly wrote. “I send $$ to his sister and he (“Javier Milei”) signs whatever I say and does what I want.”

Following these revelations, LIBRA’s price plummeted over 90% within hours, with insiders allegedly extracting more than US$ 107 million in liquidity. Davis himself had previously acknowledged holding US$ 100 million in profits from the token’s launch, admitting uncertainty about how to manage the funds after Milei’s team purportedly abandoned the project. The statements seem to make one thing clear. The key people around the president have succumbed to the stupid libertarian narrative of the “crypto gangsters”. It seems as if the leading figures in the Casa Rosada are simply following every libertarian-criminal sheeple narrative without reflection. This is very reminiscent of the President of El Salvador, Bukele, who calls himself the “coolest gangster in the world and the king of philosophers”. If you want to know more about the latest bizarre developments around Bukele and cryptocurrencies and a possible blueprint path for Milei, read this newsletter blog:

Q5: What is the Regulatory Fallout and the More Failed Meme Coins?

With Davis being a U.S. citizen and U.S.-based investors involved, American authorities are weighing legal action. Blockchain analysts have also linked Davis to other failed meme coins, including $MELANIA, a token associated with U.S. First Lady Melania Trump. Meanwhile, the Argentine government has not issued an official response, and Karina Milei has remained silent on the allegations. This scandal raises serious questions about crypto market manipulation, political influence, and insider trading—topics that global regulators will likely scrutinize further.

Q6: Why is this such a big deal in Argentina compared to similar incidents in other countries?

The impact in Argentina has been much larger than similar cases abroad. For instance, when U.S. President Donald Trump promoted a meme coin, the media cycle moved on quickly. In contrast, Argentina’s stock market dropped by over 5%, and the scandal has dominated national headlines for days. One reason is Argentina’s unique economic environment. The peso is highly unstable, and citizens are accustomed to dealing with currency volatility in a way that few other nations are. This scandal resonates deeply because it mirrors the country’s long history of financial instability and mistrust in the local currency.

Q7: How does this compare to similar cases?

The $LIBRA scandal is part of a broader trend in the memecoin market. Just before his inauguration, U.S. President Donald Trump launched his own memecoin, $TRUMP, which initially surged to a US$ 13 billion market cap before crashing. Other similar cases include:

• $MELANIA, inspired by Trump’s wife, peaked at US$ 2.1 billion before collapsing to US$ 190.9 million.

• $CAR, launched by the Central African Republic, briefly reached a value equal to one-third of the country’s GDP before losing over 90% of its value.

Q8: What were the political and economic consequences in Argentina?

The scandal damaged Milei’s credibility and had broader market implications. The S&P Merval index, Argentina’s stock market benchmark, fell 5.58%. Additionally, opposition lawmakers have pushed for impeachment proceedings, accusing Milei of using his influence to promote financial fraud.

Q9: Was $LIBRA a classic “rug pull” scam?

Experts are divided. Alexandre Vasarhelyi, a partner at B2V Crypto, argues that $LIBRA was not a typical “rug pull”—where creators launch a cryptocurrency, hold a large share, promote it, and then sell it at a peak, leaving other investors with losses. Instead, he believes it reflects a growing trend of speculative and fraud memecoins.

Q10: How does Argentina’s economic reality shape public perception of crypto?

Living in Argentina often feels like an advanced economics course in real-world currency crises. Many citizens already rely on cryptocurrencies as an alternative to the peso. Stablecoins like Tether (USDT) are widely used to hedge against inflation, and in some economic downturns, Bitcoin and Ethereum have been more stable than the Argentine peso.

In our CyberSynth Circular Newsletter of the January 2025 issue, we already reported on the highly peculiar and presumably criminal machinations of Tether in El Salvador with President Nayib Bukele and suspected that similar considerations could also be a blueprint for Milei in Argentina.

Milei himself campaigned on economic radicalism, including dollarization—the process of replacing the peso with the U.S. dollar. His supporters already see crypto as part of the solution to Argentina’s financial instability, so the scandal doesn’t necessarily undermine his credibility.

Q11: What does this reveal about the crypto market?

The scandal highlights the lack of regulation in the cryptocurrency space. According to Vasarhelyi, the U.S. has deliberately chosen not to regulate memecoins, allowing an unregulated market to flourish.

Tasso Lago, founder of Financial Move, warns that memecoin investments are often based purely on speculation and fraud rather than strategy or a real business application. He likens buying them to purchasing, in the best of all ways, a lottery ticket. Similarly, Vinicius Bazan, CEO of Underblock, argues that memecoins thrive by monetizing a community’s sense of belonging rather than offering real utility.

Q12: Will this scandal hurt Milei politically?

It’s unlikely that Milei will be impeached over this incident. His political fate depends more on whether he had direct financial ties to the people behind $Libra. If evidence of personal profit or deeper corruption emerges, it could damage his standing. However, the immediate economic fallout has been cushioned by the fact that more foreign investors than Argentines bought into the coin. Here, too, there is a striking parallel to previous defaults. In fact, it has always been foreign investors, above all European institutional investors, but also some US high yield funds, who notoriously fall for the fine marketing narrative in Argentina on a regular basis. A national business model?

Q13: Could this accelerate economic reforms instead of slowing them down?

Surprisingly, yes. Instead of retreating, Milei may see this event as further justification for radical economic reforms. The collapse of $Libra could reinforce his argument that Argentina needs to drop currency controls and move toward dollarization.

Most politicians would take a step back after a scandal like this. But Milei’s track record suggests he might do the opposite. His entire political brand is built on rejecting conventional wisdom, and he has often been rewarded for taking bold, unconventional stances.

Q14: How does this impact Argentina’s negotiations with the IMF?

Milei was scheduled to visit the U.S. last week (Feb. 17-21, 2025) to meet with President Trump and discuss securing IMF support for Argentina’s economic transition. He has already been using Argentina’s debt as leverage in these negotiations. This scandal won’t deter him—in fact, it may push him to pursue even more aggressive financial reforms. And the IMF and good part of the global financial market will follow the “Master Mind” … .

Q15: What’s next for crypto regulation?

With high-profile cases like $LIBRA, $TRUMP, and $CAR making headlines, governments may feel increasing pressure to regulate memecoins. However, as long as the market remains largely unregulated, speculative booms and busts are likely to continue. The main problem here is that in an increasing number of cases the heads of state and the transformed autocratic state organizations are directly involved.

This scandal serves as a cautionary tale for investors and policymakers alike: in the world of memecoins, hype can turn into disaster overnight.

Q16: What’s the biggest takeaway from this incident?

The $Libra scandal is about more than just a failed meme coin. It reflects Argentina’s deep economic instability and the ways in which crypto has become intertwined with everyday financial survival. Rather than weakening Milei, the crisis may embolden him to accelerate reforms, including removing currency controls and pursuing dollarization.

Q&A: Solana’s Meme Coin Mania - A Double-Edged Sword

Preface

Solana (SOL) has become a hotspot for meme coins, leading to both explosive growth and severe challenges. Recent events, such as the collapse of $LIBRA, have shown how volatile this trend can be. In this Q&A blog, we break down the risks and rewards of Solana’s meme coin mania.

Q17: Why did Solana (SOL) drop 15% recently?

Solana took a major hit, dropping nearly 15% to US$ 165.21—its lowest price since mid-December. One of the biggest reasons was the chaos caused by meme coins on its blockchain, particularly $LIBRA, a Solana-based token that skyrocketed in value after being hyped by Argentine President Javier Milei, only to collapse and wipe out US$ 4.4 billion within hours. The overall crypto market also struggled, losing US$ 150 billion over the weekend.

Q18: How did meme coins contribute to Solana’s price drop?

The rapid rise and fall of meme coins like $LIBRA and Harry Bolz ($HARRYBOLZ) caused uncertainty and fear in the market. Many investors moved their funds to safer assets, increasing Bitcoin’s market dominance to 60%, its highest level in four years. The flood of low-quality meme coins is eroding confidence in Solana’s ecosystem, making it more difficult for legitimate projects to gain traction.

Q19: Why is Solana a popular choice for launching meme coins?

Solana offers high transaction speeds and low gas fees, making it an attractive platform for launching new cryptocurrencies, including meme coins. The blockchain’s efficiency allows projects to go viral quickly, drawing in speculative traders looking for fast profits. However, this accessibility also makes it easy for bad actors to create scam projects.

Q20: What are the main risks of meme coins on Solana?

There are several key risks:

1. Market Saturation – The sheer number of meme coins makes it hard for investors to distinguish legitimate projects from scams.

2. Scams and Rug Pulls – Many meme coins are created solely to pump prices before their creators vanish, leaving investors with worthless tokens.

3. Distraction from Innovation – The hype around meme coins can overshadow real innovation happening on Solana, such as DeFi protocols and NFT projects.

4. Extreme Volatility – Meme coins often experience massive price swings driven by social media trends rather than any real value, making them highly risky investments.

Q21: Can meme coins be beneficial for Solana?

Despite the risks, meme coins can bring positive attention to Solana, attracting new users and increasing on-chain activity. If managed responsibly, they can create opportunities for developers and traders. However, the challenge is ensuring that this trend does not undermine the blockchain’s credibility and long-term potential.

Q22: What can be done to reduce the negative effects of meme coins on Solana?

Several actions could help:

• Investor Education – Teaching users how to identify scams and avoid hype-driven investments.

• Responsible Project Development – Encouraging quality projects that add value to the ecosystem rather than quick cash grabs.

• Community Vigilance – Cracking down on fraudulent projects and promoting legitimate innovation within the blockchain.

Q23: What does the future look like for Solana and its meme coin craze?

Solana’s meme coin mania is a double-edged sword. If managed properly, it can fuel growth and attract more users to the ecosystem. However, if scams and excessive speculation continue unchecked, it could damage Solana’s reputation and stability. The key to success will be balancing excitement with responsible investment practices.

Who Is Hayden Davis? The Man at the Center of Argentina’s LIBRA Token Scam

The $LIBRA token scandal has rocked Argentina, raising serious questions about cryptocurrency fraud, political involvement, and financial misconduct. At the heart of the controversy is Hayden Davis, the CEO of Kelsier Ventures, who has been accused of orchestrating a classic rug-pull scam worth US$ 107 million. But who is Davis, and what role did he play in this unfolding scandal?

A previously little-known figure in the crypto world, Kelsier Ventures CEO Hayden Davis, has become a central figure in the unfolding $LIBRA controversy. His involvement in the token’s development and links to political figures have drawn intense scrutiny, particularly after revelations about his past associations and questionable financial dealings.

Official statements from Argentine President Javier Milei’s office confirm that Davis and Milei met at the Casa Rosada on January 30. However, while Davis described himself as Milei’s “advisor” in a February 15 video—where he also suggested reinvesting the $LIBRA funds—Milei’s office has denied any official ties, stating that Davis "did not have and does not have any current connection with the Argentine government." (…)

In an extensive interview with investigative YouTuber Coffeezilla, Davis attempted to defend his role in the $LIBRA debacle, claiming that the project was “not a rug” but rather a “plan gone miserably wrong.” He also admitted to holding roughly $100 million in funds as a custodian while trying to determine the next steps. However, two key revelations from the interview have intensified scrutiny:

Self-Incrimination – Davis’ candid remarks about his involvement in token manipulation strongly resemble the behavior of notorious crypto fraudsters like Sam Bankman-Fried (SBF). Many believe this interview will be used against him in future legal proceedings.

Exposing the Memecoin Industry – Davis provided an unfiltered look into the mechanics of the memecoin market, revealing how insiders—investors, influencers, and "snipers"—manipulate token launches for profit. This shatters the popular notion that memecoins operate as decentralized, community-driven projects, exposing them as highly coordinated financial schemes.

Reports from CoinDesk and Argentine newspaper La Nación allege that Davis bragged in text messages about sending money to Milei’s sister. Davis has since denied making any payments, but the allegations raise broader concerns about whether financial incentives were used to gain political access.

A February 28 article by The New York Times introduced another layer of controversy, revealing that Davis had allegedly claimed in messages that he had “control” over President Milei and could broker deals at the highest levels of government.

Q24: What is the $LIBRA Token Scam?

The $LIBRA token was a memecoin that saw its price surge after Argentine President Javier Milei shared information about it on social media on February 14, 2025. Shortly after, Milei deleted his posts, triggering a market collapse that wiped out over 90% of $LIBRA’s value, leaving investors in the lurch. Many now believe this was a pump-and-dump scheme, where insiders artificially inflated the token’s price before selling off their holdings.

Q25: How Is Hayden Davis Involved?

Hayden Davis, alongside his father Tom Davis, is accused of creating the $LIBRA token under their company Kelsier Ventures. Allegations suggest that once the token reached a market value of US$ 4.5 billion, the Davises and their associates withdrew liquidity, causing the token to crash. The Jupiter Exchange (Argentine company)has confirmed that Hayden Davis knew in advance about President Milei’s planned promotion of $LIBRA.

Q26: Did President Milei Know About the Scam?

Milei’s involvement remains controversial. While his office has denied prior knowledge of $LIBRA before assuming power, his social media posts endorsing the token have fueled allegations of insider trading. Legal complaints suggest that he may have been complicit in the scheme, intentionally misleading investors. In response, Milei has called for an official investigation into the incident, including his own role.

Q27: What Legal Actions Have Been Taken?

Several legal complaints have been filed against Davis and others involved in the $LIBRA token collapse:

1. Argentine attorneys Marcos Zelaya and Jonatan Baldiviezo accuse Milei and Davis of fraudulent behavior and financial misconduct.

2. Lawyer Agustín Rombolá has filed a class-action lawsuit aimed at recovering investors’ lost funds.

3. A court hearing was scheduled for February 17, which could set a precedent for crypto regulation in Argentina.

Q28: What Does This Mean for Argentina’s Crypto Market?

The scandal has sparked political turmoil, with opposition leader Leandro Santoro pushing for Milei’s impeachment. Beyond politics, the LIBRA token collapse has exposed the risks of unregulated crypto ventures and could lead to stricter regulations for Argentina’s digital asset market.

Q29: What Happens Next?

As investigations continue, Hayden Davis remains a key figure in the case. Whether this was a reckless marketing stunt or a deliberate financial fraud, the LIBRA token scam has already left a lasting impact on Argentina’s crypto landscape. The upcoming court hearing will be crucial in determining the legal and financial consequences for all parties involved.

Meme coins may be entertaining and potentially profitable, but they come with significant risks. For Solana to thrive, the community must focus on quality over quantity, ensuring that the blockchain remains a hub for innovation—not just speculative gambling.

The $LIBRA scandal in Argentina has exposed the dark side of the libertarian spirit and the aggressive demand for unmoderated power from its supporters.

The scandal, which began in February 2025, shows how advocates of libertarianism seek to circumvent regulation and wield unchecked power.

Javier Milei, the president of Argentina, supported the launch of the $LIBRA cryptocurrency, which was supposed to help stimulate the country's economy.

However, within a few hours, the value of $LIBRA rose from US$ 0.000001 to US$5.20 and then fell to US$ 0.99.

This led to a huge loss of confidence and money.

This incident illustrates how Libertarians seek to undermine the power of government and create unregulated markets that often lead to abuse and fraud.

The demand for absolute and unmoderated freedom without regulation for those who are willing without regard for other individuals or a coexisting society can easily devolve into chaos and exploitation.

The $LIBRA scandal is a warning signal of the need for regulation and oversight to prevent such abuses and protect the public interest. It is a reminder that freedom and responsibility must go hand in hand to ensure a just and stable society.

The real risk now isn’t just another crypto rug pull—it’s the possibility that Milei’s next bold move could shake Argentina’s entire financial system. Since day one of his tenure, Javeir Milei has been dancing a tango in a threesome.

Together with the a grande dame des élégantes salles de danse de Buenos Aires - Madame Peronista and the young attractive dancer Miss Zeitgeist.

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