Around 86% of traders who own $LIBRA lost their investments, data from research firm Nansen revealed.
What’s the Significance? This incident demonstrates how a national government’s endorsement can cause chaos in the crypto market, potentially influencing other regulators’ willingness to adopt blockchain-based applications. (Read more: Everything to Know About the $LIBRA Memecoin Scandal: From $4.5 Billion Hype to Fraud Charges)
The Numbers: Nansen found out that
- 15,000+ Crypto Wallets: Experienced gains or losses exceeding $1,000.
- $251 Million: Total funds lost.
- $180 Million: Profits earned, but only by a minority of traders.
- From $12.1 Billion to $8.29 Billion: Decline in the total value of tokens locked (TVL) on Solana during the
Analysis By Nansen: According to research analyst Nicolai Sondergaard, there was “very tangible on-chain evidence” indicating that a small group of insiders profited at the expense of the majority.
- The turmoil began shortly after Argentina’s President Javier Milei promoted a website purportedly aimed at raising funds for small businesses in the country using $LIBRA.
- Trading bots quickly tried to front-run potential gains, initiating rapid trading activity.
- Although Milei deleted his original post on X just five hours later, it was already too late—the token had plunged 80% from its peak.
- The drop in Solana’s TVL suggests traders were likely speculating on future memecoin launches and trading.
Key Quote:
“What started with a presidential endorsement and a $4.5 billion valuation quickly unraveled as ‘insiders’ took profits, retail got burned, and key backers distanced themselves. Onchain data make it clear that a handful of wallets walked away with millions, while most traders were left with deep losses.”
Nansen
Zoom Out: $LIBRA’s peak price was at $4.50, but when chaos happened, it went down to $0.50 per token.
This article is published on BitPinas: Aftermath: 86% of Libra Investors Lost Money
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