Meme Coin's Political Rollercoaster: Scandal, Surge and Collapse

The Libra cryptocurrency, briefly buoyed by Argentine President Javier Milei's support, quickly collapsed, exemplifying the risks of politically endorsed meme coins. Central African Republic President Touadera and former U.S. President Trump have also launched similar coins, which often spike rapidly before crashing, affecting industry credibility and investor trust.

The world of cryptocurrencies has witnessed a dramatic episode as the Libra coin, briefly endorsed by Argentine President Javier Milei, became the latest in a sequence of politically affiliated meme tokens to spark controversy before sharply declining in value.

The Libra release followed the launches of other politically linked meme coins, including those by former U.S. President Donald Trump and Central African Republic President Faustin-Archange Touadera. While they attract initial investor attention, these tokens typically experience meteoric rises and subsequent crashes.

Critics, including industry leaders like Coinbase's Brian Armstrong, argue that such meme coins may harm the cryptocurrency sector's reputation. The volatile nature of these tokens often results in significant financial losses for most investors while benefiting a select few. The fallout from the Libra incident in Argentina underscores these concerns.

(With inputs from agencies.)