Public trust in government may already be at historic lows, but some politicians are finding innovative new ways to erode it even further.
What happened: Argentina’s president, Javier Milei, landed in hot water after promoting a cryptocurrency that spiked in value after receiving his blessing — before quickly tanking, leaving buyers with steep losses.
- The price of the coin, called $LIBRA, surged 2,000% after Milei promoted it to his nearly 4 million followers on X, saying it would “incentivize the growth of the Argentine economy.”
- $LIBRA's price soon collapsed, and Milei deleted his post promoting the coin. Opposition politicians claim he participated in a pump-and-dump scheme and have called for his impeachment.
Zoom out: Milei isn’t the only political leader wading into the crypto world — Donald and Melania Trump have lent their name to so-called meme coins, reportedly raking in large profits while late adopters have faced US$2 billion in cumulative losses.
Why it matters: Unscrupulous public figures have discovered that their large social media followings plus lightly-regulated crypto projects can equal tidy profits. That's a formula likely to breed more corruption.