LIBRA Memecoin Fiasco Resulted in Massive Losses Amounting To $251M

Investors underwent big-time losses from the $LIBRA scandal. Nansen did an on-chain analysis to find that more than 86% of traders lost over $251 million in the market. The rest of the gainers made a meager profit of only $180 million.  

The event generated a net negative wealth of $71 million. In a bearish market like this, the amount is a a lot to spare.  

But coin experts say that the event must be seen as an eye-opener for investors and coins alike. The chances of meme coins supported by political backing succeeding in the market are very volatile.  

Meanwhile, investors must stay away from random meme coins endorsed by leaders abruptly. The bottom line- take a minute or two to reevaluate the celebrity coins before putting in your money.  

LIBRA started trading on Solana’s Meteora network. Last Friday and Saturday, LIBRA surged exceptionally. The prompt from the Argentine President worked well. In a matter of 48 hours, the market cap became $4.5 billion. But it came down as fast as it went up.  

Later the president clarified that the gains from the coins would have helped the Argentine economy to flourish.  

The momentary bullish sentiment did not survive long. However, there were 4000 crypto addresses pinned to that single token. But disasters ensued as the bubble popped. Around 90% of the investors who put their money in haste pulled away in a flash. Imagine! The market cap of LIBRA fell 90% in a day.  

Political Brawls 

The X post which flaunted LIBRA, from President Milei’s handle vanished eventually. He was not promoting it anymore. As a result, around 70% of tokens trading in $LIBRA within the 16th to 18th ended with losses. Some of the investors were thinking that the price would soar again, followed by a retweet from Milei. But that didn’t happen.