LIBRA Token Incident Further Harms Solana Memecoin Ecosystem According to Galaxy
According to a report from Galaxy Research, the recent LIBRA token incident has negatively impacted the Solana memecoin ecosystem. Key points include:
- The introduction of the TRUMP token in January had already created issues, leading to reduced liquidity.
- LIBRA's launch could further diminish interest in Solana's SOL token, as demand for SOL-denominated assets, particularly memecoins, has decreased.
- Since LIBRA's release, SOL has experienced a decline in value, trading 8.6% lower at $168.73.
- LIBRA reached a market cap of approximately $4.5 billion before dropping by 90%.
- Argentina's President Javier Milei faces impeachment threats tied to promoting LIBRA.
- Kelsier CEO Hayden Davis claimed responsibility for both the LIBRA and MELANIA tokens, stating there was no intention of a rug pull but acknowledged significant financial losses.
This situation reflects ongoing challenges within Solana’s memecoin sector, which has seen decreased valuations since earlier this year.