Libra Token Dispute: Cardano's Hoskinson Defends Position, Says Milei Misinformed

In response to the ongoing debate around the LIBRA token , Cardano founder Charles Hoskinson expressed his belief that Argentinian President Javier Milei was not directly implicated in the associated controversy.

Hoskinson's remarks indicate that thorough decision-making and proper due diligence might have averted the scandal.

According to Hoskinson, it seems likely that Milei’s advisors presented the project as a promising opportunity, perhaps comparing it to other political tokens such as the Official Trump (TRUMP) token. However, some insiders allegedly orchestrated a scheme for personal gain, capitalizing on the token's peak value and leaving Milei to deal with the repercussions.

Recently, President Milei's endorsement of the LIBRA token led to a significant increase in its market value, which briefly reached $4.5 billion. This surge was short-lived, as the token's value plummeted by 95%, causing substantial losses for investors.

Concerns have been raised about insider withdrawals totaling $107 million, leading President Milei to withdraw his support for the token. Amidst these developments, Hoskinson offered his insights during a recent YouTube video.

"I think there are some people in that inner circle surrounding Milei himself who took advantage of his lack of knowledge of our industry," said Hoskinson.

While Hoskinson suggests that President Milei may have been unaware of the complete details of the scheme, the incident nonetheless tarnished his standing.

This controversy has expanded beyond personal reputation issues, now drawing the attention of Argentina's Anti-Corruption Office (OA), which has launched an investigation into President Milei and his cabinet.

President Milei, in response, has requested the investigation and established an Investigation Task Force to scrutinize the KIP Protocol and related entities. Additionally, The Kobeissi Letter reports that international law firms are preparing extensive lawsuits against Milei.

Hoskinson remarked that Argentina had a significant opportunity to be transformed by blockchain-based solutions, referencing examples like voting systems, tracking government budgets, supply chain management, and digital identity solutions.

However, the LIBRA token incident has damaged the perception of blockchain technology in Argentina, resulting in a negative image.

"The frustrating thing for me is that all Milei had to do is just let the blockchain industry come work with him, and the entire country could be revolutionized and transformed," Hoskinson noted.

As a consequence of the scandal, political adversaries may use it as a means to impede future adoption of cryptocurrencies in the public sector, associating blockchain more with fraud than innovation.

Even before the LIBRA scandal, Hoskinson's team harbored concerns about collaborating with Milei's administration, citing political instability and regulatory relaxation. He drew comparisons between Argentina's decision to abolish its tax agency (AFIP) and the hypothetical closure of the US IRS, highlighting issues of volatility and lack of institutional stability.

With government bodies at risk of sudden dissolution, Hoskinson sees long-term blockchain partnerships with the Argentine government as precarious and challenging to secure.