LIBRA Token Fiasco: Over 13,000 Investors Left in Ruins

The LIBRA token, briefly supported by Argentine President Javier Milei, has proven to be a financial disaster for the majority of its investors. According to a study conducted by a blockchain research firm, more than 13,000 traders suffered losses exceeding a total of $251 million.

LIBRA: A Sudden Frenzy Followed by a Brutal Crash

It all began on February 14, 2025, at 10:01 PM UTC, when the Argentine president expressed his support for LIBRA on social media. This message immediately triggered a surge in the token’s price, attracting a massive influx of crypto investors. Within hours, the price of LIBRA reached an impressive peak of $4.55. However, this meteoric rise was followed by an equally rapid fall, which cost Solana 6.2% in one day.

The confusion was amplified by the contradictory statements from the project’s promoters. While LIBRA was initially presented as a financing tool for small Argentine businesses, one of the project’s officials, Hayden Davis, later referred to it as a mere “memecoin.” This statement cast doubt on the legitimacy of the project and contributed to the collapse of the crypto.

Massive Losses for Crypto Investors

Nansen’s on-chain data reveals a concerning reality: of the 15,431 crypto wallets that recorded gains or losses exceeding $1,000, 86.07% suffered losses totaling $251 million. Furthermore, about 4,693 wallets recorded truly significant losses. Among them, 1,478 lost between $1,000 and $10,000, totaling $4.8 million. More than 2,800 wallets lost between $10,000 and $100,000 (totaling $82.4 million), while 415 others lost over $100,000, amounting to $137.4 million.

In contrast, 2,101 wallets recorded cumulative gains of $180 million. Notably, two active wallets between 10:01 PM and 10:44 PM UTC on February 14 made combined profits of $5.4 million! Suggesting possible prior knowledge of the events.

The LIBRA episode thus highlights the risks associated with investing in speculative tokens, often influenced by public statements such as the memecoin from the Central African Republic. It is also important to remember the necessity of thorough analysis before investing in crypto.