A devastating crash in the LIBRA memecoin has resulted in massive losses for investors. The incident, linked to Argentina’s President Javier Milei, has destroyed $251 million in investor wealth. Data from Nansen reveals a stark reality where 86% of traders suffered losses.
The Rise and Fall of LIBRA
LIBRA’s journey began on Meteora, a Solana-based DEX. The token’s market cap surged to $4.5 billion after President Milei’s endorsement on X. His statement suggested the project would boost Argentina’s economy. Over 40,000 crypto addresses invested in the token.
The euphoria proved short-lived. Insider selling triggered a massive 90% drop in market value. President Milei later retracted his support, claiming ignorance about the project details.
Market Impact Analysis
The LIBRA incident highlights several critical market implications:
- Net wealth destruction of $71 million ($251M lost vs. $180M gained)
- Significant market liquidity drainage
- 70% of trading wallets recorded losses
- Token holders dropped from 50,000 to 35,770
Lessons for Crypto Investors
This event serves as a crucial reminder about memecoin risks. Political figure associations don’t guarantee safety. Two wallets made $5.4 million in profits within 43 minutes, showing how insiders can manipulate such tokens.
The incident may impact Argentina’s crypto regulations. Opposition parties have called for President Milei’s impeachment. This political fallout could lead to stricter oversight of crypto projects.
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The LIBRA fiasco demonstrates how quickly memecoin valuations can evaporate. Investors should conduct thorough research and maintain skepticism toward celebrity endorsements.
Tags: Memecoin, Argentina, Crypto Scams, Market Analysis, Political Risk
Source: https://www.coindesk.com/markets/2025/02/20/libra-memecoin-fiasco-destroyed-usd251m-in-investor-wealth-research-shows