Cardano founder Charles Hoskinson has spoken out on the scandal surrounding the Libra token, shedding light on the involvement of Argentinian President Javier Milei.
In his recent remarks, Hoskinson suggested that with better judgment and thorough investigation, the controversy could have been averted.
Addressing the issue, Hoskinson indicated that advisors close to Milei likely pushed the Libra project, drawing comparisons to other political tokens like Official Trump (TRUMP). However, it appears that these advisors orchestrated a deceptive plan to reap profits at the token's peak, leaving Milei to face the aftermath.
Following Milei's promotion of the LIBRA token last week, its market capitalization soared to $4.5 billion before rapidly declining by 95%, resulting in substantial losses for investors.
Amid suspicions of insider withdrawals amounting to $107 million, Milei rescinded his support for the token. Hoskinson shared his insights on the matter in a recent YouTube video, suggesting that individuals within Milei's inner circle exploited his limited understanding of the industry.
While Milei may not have been fully aware of the scheme's intricacies, Hoskinson noted that the controversy has tarnished his reputation.
The situation has escalated to legal scrutiny, with Argentina's Anti-Corruption Office launching an investigation into President Milei and his team.
Despite the potential for blockchain-based solutions to revolutionize Argentina in areas such as voting systems, government budget monitoring, and supply chain management, the Libra scandal has significantly marred the technology's image in the country.
Hoskinson expressed frustration over the missed opportunity for blockchain industry collaboration with Milei, highlighting the potential for transformative change in Argentina.
The repercussions of the scandal may impede future crypto adoption in the public sector, as political adversaries could exploit the situation to deter innovation.
Hoskinson outlined existing reservations about engaging with Milei's administration due to political volatility and regulatory uncertainties, drawing parallels to the elimination of Argentina's tax agency and its impact on institutional stability.
As a result, establishing enduring blockchain partnerships with the Argentine government remains challenging and uncertain.
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