- Vitalik Buterin views the LIBRA collapse as a lesson on the importance of education in crypto.
- Buterin highlights Argentina’s resilient crypto community amid the LIBRA token crash.
- Buterin’s warning about political coins proves true with the LIBRA controversy.
Ethereum co-founder Vitalik Buterin has expressed positive feelings about Argentina’s crypto community’s future. This optimism comes despite the controversy linked with the Solana-based meme coin LIBRA and the Argentine President, Javier Milei.
Buterin sees the situation as an important lesson, pointing to the need for education and the value of resilience after setbacks.
LIBRA Coin Collapse: $251M Lost, Milei Endorsement Fallout
Initially endorsed by Argentine President Javier Milei, the LIBRA token rose to a $4.5 billion valuation before dropping by 95% over a weekend.
This crash led to losses for investors, with an estimated $251 million lost by 86% of traders. According to Nansen, 70% of the wallets involved in LIBRA trading experienced financial damage.
LIBRA Founder Claims Milei Sister Paid for Endorsement
In the aftermath, Hayden Davis, a key figure behind LIBRA, claimed that Milei had no financial stake in the token and argued that Milei’s sister had been paid to influence the President’s endorsement of the project.
Related: Argentina President Milei Backpedals on LIBRA Meme Token After 89% Plunge in Value
Despite these allegations, Milei remained assertive, continuing to post about LIBRA even after the rug pull had been exposed, declaring, “No crying in the casino.”
Buterin Praises Argentina’s Ethereum Community
Buterin responded to the debate on his X account, which centered on the general implications for Argentina and Latin America’s role in the crypto space.
He praised Argentina’s Ethereum community and noted the contributions of local developers to the Ethereum network.
Argentina Devconnect Idea Floated by Buterin
He echoed sentiments shared by Fede’s intern, who expressed a strong confidence in Bitcoin and Ethereum’s abilities and resilience in facing challenges.
Buterin affirmed this by highlighting the determination of the Argentine people to drive forward crypto adoption despite setbacks.
To further support Argentina’s crypto scene, he suggested hosting Devconnect in Argentina. Devconnect is a major Ethereum developer event. Buterin believes this could offer a unique opportunity. It could showcase the country’s growing crypto community and its Ethereum ecosystem contributions.
Factors such as the quality of the local community, accessibility for global developers, the availability of suitable venues, and the potential for long-term adoption of Ethereum-based applications in the region will influence the decision to host Devconnect in Argentina.
Buterin’s Warning About “Political Coins” Proven Right
Buterin’s concerns about political involvement in crypto have come to reality. This is evident after the LIBRA collapse. A month before the token’s crash, Buterin had warned about politician-endorsed coins. He cited their potential to be used for bribery and political manipulation.
Related: Solana Meme Coin Chaos: Scandals Spark Investor Risk Debate
He argued that political coins are risky for democracy as they serve as ideal tools for manipulating political influence through economic means.
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