Argentina’s President Javier Milei is facing trouble after a meme coin scandal, making it harder for him to gain political allies ahead of upcoming elections.
According to Reuters, Milei recently supported a cryptocurrency called Libra on social media, causing its price to rise sharply before crashing just hours later.
Many people accused him of promoting the coin to increase its value before it collapsed, a common scam known as a “rug pull.”
Milei’s government, however, insists that he was tricked and had no business ties to the cryptocurrency, Reuters reports. Despite this defense, the scandal has shaken public trust in him.
A poll by Reuters’ sources found that more than half of Argentines doubt Milei’s explanation, while another survey showed that more people now view him negatively.
This shift in public opinion is a problem for Milei, who needs strong support to gain more power in Congress.
The president, who became popular by attacking Argentina’s traditional politicians as corrupt, is now being seen by some as part of the very system he criticized, Reuters explains. One voter told Reuters that many people no longer believe Milei is different from other politicians.
Meanwhile, Argentina’s political landscape is shifting. The main opposition group, the Peronists, is divided, with Buenos Aires Governor Axel Kicillof forming his own political bloc, Reuters reports. This could help Milei’s party stay strong, but if his right-wing allies also split, the opposition could gain ground.
Meme coins, like the one at the center of this controversy, often gain quick popularity but are risky investments.
Reuters reminds us that similar meme coins, like Dogecoin, have also seen dramatic price swings after being endorsed by famous figures like Elon Musk.
In this case, Milei’s social media post to his 3.8 million followers helped boost Libra, but when the coin crashed, so did his credibility.
This scandal has given his political rivals the ammunition they needed to attack him, and with elections approaching, Milei will have to work hard to rebuild trust, Reuters concludes.