LIBRA Memecoin Incident Results in $251 Million Loss for Investors
The LIBRA memecoin incident in Argentina resulted in substantial losses for investors, with research from Nansen indicating the following:
- 86% of traders lost a total of $251 million.
- Only $180 million in profits were secured by winners.
- This event was characterized as "net-negative wealth-generating," draining liquidity from the market.
The token, which launched on Meteora, a Solana-based decentralized exchange, quickly reached a market cap of over $4.5 billion after President Javier Milei promoted it. However, the surge was short-lived as insiders sold off large amounts of the token, causing a 90% drop in market cap.
Key points include:
- Milei later retracted his support, stating he was unaware of project details.
- 70% of wallets trading LIBRA during a specified period incurred realized losses.
- The number of unique holders fell from over 50,000 to 35,770 within days.
- Two wallets made over $5.4 million in profit through quick trades.
- The opposition has threatened impeachment over the incident.
This situation highlights the volatility associated with tokens linked to political figures.