Aftermath: 86% of Libra Investors Lost Money

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. 

• In an official statement, Milei admitted that he was not aware of the details of the project.
• Meanwhile, Kelsier Ventures CEO Hayden Davis, who helped launch the coin, dismissed Libra as just a memecoin in stark contrast to its initial framing as a tool for Argentina’s economy. (Read more: “People That Get Mad Aren’t Insiders”: Coffeezilla Reveals Libra Token Scandal)

This article is published on BitPinas: Aftermath: 86% of Libra Investors Lost Money

What else is happening in Crypto Philippines and beyond?