Shocking On-Chain Data: 86% of Traders Suffer Total Losses in LIBRA Meme Coin Drama
A recent analysis by Nansen has unearthed a troubling truth about the infamous LIBRA meme coin - a staggering 86% of traders who dabbled in it faced devastating losses amounting to a jaw-dropping $251 million.
Amidst the sea of red, a lucky few managed to walk away with a hefty sum of $180 million in profits, showcasing a tale of stark contrasts.
LIBRA's Rise and Fall: from Hype to Heartbreak
The report delves into the tumultuous journey of the LIBRA token, which saw a meteoric rise to a valuation of $4.5 billion after receiving a nod from Argentina's President Javier Milei on February 14, 2025. Initially marketed as a tool to support ventures in Argentina, the coin's narrative quickly unraveled as controversies mounted. Milei rescinded his endorsement, while co-creator Hayden Davis downplayed it as a mere meme project.
A Thorny Issue Emerges: Insiders vs. Retail Traders
The on-chain data from Nansen paints a damning picture - insiders and savvy traders reaped substantial profits at the expense of the majority of investors who faced crippling losses. Notable among the winners was HyzGo2, who pocketed a cool $5.1 million by swiftly entering and exiting within 43 minutes.
Another wallet holder, 8bZsrR, cashed in a jaw-dropping $25 million in gains. However, Nansen's deeper dive revealed that these gains were spread across seven wallets, with some exiting at a loss.
Furthermore, it came to light that many top profiteers were likely trading bots and insiders, signaling a skewed playing field where retail traders bore the brunt of the upheaval. The report's eye-opening findings shed light on the questionable practices that permeated the LIBRA saga.
Notable Figures Caught in the Crossfire
Among the casualties of LIBRA's collapse was Barstool Sports founder Dave Portnoy, who reportedly lost $6.3 million on the ill-fated token. Curiously, on-chain evidence suggested he was later reimbursed $5 million, raising suspicions of covert dealings and selective refunds.
Unmasking Kelsier Ventures' Involvement
In a further twist to the saga, blockchain intelligence firm Arkham uncovered over 1,000 addresses linked to Kelsier Ventures, helmed by Hayden Davis. Shockingly, Kelsier still retains nearly $300 million in assets, including a substantial LIBRA stash.
Arkham's findings painted a picture of a complex web of funds, with Kelsier controlling a sizable chunk of the supply of another coin, BRYAN.
The Ripple Effect: LIBRA's Fallout Reverberates
The repercussions of LIBRA's collapse extended far beyond its immediate impact, leading to a 16% dip in Solana's price and a capital flight from Solana-backed projects to Ethereum. DeFiLlama reported a significant drop in liquidity from $12.1 billion to $8.42 billion in the aftermath.
As the dust settles on the LIBRA debacle, questions loom large over the integrity of the Solana meme coin market, with insiders profiting while retail investors bear the brunt. The episode serves as a stark reminder of the perils lurking in the wild west of cryptocurrency launches, as highlighted by Uniswap CEO Hayden Adams in a recent BeInCrypto report.