The meme coin LIBRA was once promoted as a funding tool for Argentina but quickly turned into a nightmare for thousands of investors. After reaching a market cap of $4.5 billion, LIBRA plummeted, leaving behind a loss of $251 million and thousands of empty wallets.

The Investor's Disaster

According to a report from the blockchain analytics company #nansen , there are still 1,001 wallets holding LIBRA with a total unrealized loss of $11 million. Of the 15,431 wallets trading LIBRA, 86% reported losses, while only 2,101 wallets were profitable with a total profit of around $180 million.

Nansen highlighted that the unrealized losses exceeded the unrealized profits of $4.57 million, indicating a serious imbalance between winners and losers in the market.

The Shadow Over Crypto

The incident #libra is not just numbers but also harms investor trust in the crypto market. Arjun Arora, CEO of Orderly Network, stated that this collapse highlights the negative image of crypto as a 'Wild West' where:

🔹 Political influence can manipulate the market
🔹 Widespread insider trading
🔹 Lack of transparency leaves retail investors as victims

LIBRA was mentioned by Argentine President Javier Milei in a now-deleted Twitter post. Initially, it was described as a tool to support small businesses in Argentina, but was later labeled by Hayden Davis, who self-identifies as a 'launch strategist,' as merely a meme coin.

Soon after, Milei was accused of fraud, and the Argentine stock market also plummeted. On-chain data further showed a connection between LIBRA and the MELANIA issuance group, a meme coin associated with former First Lady of the United States Melania Trump.

Impact on Solana and the Entire Crypto Industry

Although not directly related to the launch of LIBRA, the Solana blockchain was also affected as liquidity was withdrawn and its value dropped by 8.8% after the incident. This further harmed the image of crypto in the eyes of major investors, especially as the industry seeks to approach the mainstream market.

Arora noted that LIBRA is a major shock, negatively impacting thousands of developers striving to build a sustainable crypto platform.

President Milei and the IMF Negotiation

While LIBRA was crashing, President Milei was in Washington meeting with IMF President Kristalina Georgieva to finalize a $44 billion loan agreement to help stabilize the Argentine economy.

Overall, the crash of LIBRA is a costly lesson about the risks of meme coins and the impact of political factors on the crypto market. Investors should always be vigilant, avoid chasing FOMO, and thoroughly check information before investing in any project. #anhbacong