Ismeidy
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The meme coin fiasco #libra destroyed 251 million dollars of investor wealth
Blockchain data tracked by Nansen shows that 86% of traders lost money, totaling 251 million dollars.
The LIBRA memecoin scandal that shook Argentina over the weekend destroyed millions of dollars in investor wealth, according to an investigation by Nansen.
On-chain data tracked by Nansen shows that 86% of traders lost a total of 251 million dollars, while the winners only made 180 million dollars in profits. In other words, it was an event with "negative net wealth generation" that potentially absorbed market liquidity.
The episode is a stark reminder that tokens associated with political figures can be as risky as random memecoins and celebrity cryptocurrencies when it comes to generating or destroying fortunes in a matter of minutes.
LIBRA debuted on Meteora, a decentralized exchange based on Solana, last Friday and quickly rose to a market capitalization of over $ 4.5 billion after Argentina's president, #JavierMilei , said on X that the project backing the coin "would focus on encouraging the growth of the Argentine economy, financing small businesses and Argentine ventures."
More than 40,000 cryptocurrency addresses piled into the token, driving a price increase. However, the bullish enthusiasm was short-lived. The bubble burst when insiders dumped massive amounts of tokens, sinking the market capitalization by 90%.
"70% of the wallets that traded $LIBRA from February 16 to 18 ended up with realized losses, as many likely tried to capitalize on Javier Milei's additional retweet," said Nansen.
Blockchain data tracked by Nansen shows that 86% of traders lost money, totaling 251 million dollars.
The LIBRA memecoin scandal that shook Argentina over the weekend destroyed millions of dollars in investor wealth, according to an investigation by Nansen.
On-chain data tracked by Nansen shows that 86% of traders lost a total of 251 million dollars, while the winners only made 180 million dollars in profits. In other words, it was an event with "negative net wealth generation" that potentially absorbed market liquidity.
The episode is a stark reminder that tokens associated with political figures can be as risky as random memecoins and celebrity cryptocurrencies when it comes to generating or destroying fortunes in a matter of minutes.
LIBRA debuted on Meteora, a decentralized exchange based on Solana, last Friday and quickly rose to a market capitalization of over $ 4.5 billion after Argentina's president, #JavierMilei , said on X that the project backing the coin "would focus on encouraging the growth of the Argentine economy, financing small businesses and Argentine ventures."
More than 40,000 cryptocurrency addresses piled into the token, driving a price increase. However, the bullish enthusiasm was short-lived. The bubble burst when insiders dumped massive amounts of tokens, sinking the market capitalization by 90%.
"70% of the wallets that traded $LIBRA from February 16 to 18 ended up with realized losses, as many likely tried to capitalize on Javier Milei's additional retweet," said Nansen.
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