LIBRA Memecoin Collapse Erases $251M as Traders Face Massive Losses
Nansen data shows that 86% of traders were caught on the losing side, while insiders walked away with millions.
Argentina’s LIBRA memecoin, which soared to a multi-billion-dollar market cap in mere hours, has now become a cautionary tale after wiping out $251 million in investor wealth, according to blockchain analytics firm Nansen.
On-chain data reveals that while a select group of traders managed to pocket $180 million in profits, the majority—86%—took heavy losses. Analysts labeled the event a “liquidity drain,” highlighting how memecoin speculation can backfire spectacularly.
The Hype That Sparked a Frenzy
LIBRA made its debut last Friday on Meteora, a Solana-based decentralized exchange. Its value skyrocketed after Argentine President Javier Milei posted on X, claiming the project aimed to “boost Argentina’s economy, support small businesses, and drive innovation.”
Fueled by Milei’s endorsement, over 40,000 wallets rushed into the token, pushing its market cap past $4.5 billion. But the excitement was short-lived—within hours, insiders dumped massive amounts of LIBRA, triggering a 90% collapse.
Political Backlash and Market Fallout
Milei later deleted his post, distancing himself from the token, stating he had “no prior knowledge of its details” and would no longer support it. However, the damage was already done, with opposition politicians calling the situation an “international embarrassment” and threatening impeachment proceedings.
According to Nansen, 70% of wallets that traded LIBRA between February 16 and 18 ended up in the red, with many investors caught chasing the hype. Meanwhile, two wallets that bought LIBRA at 22:01 UTC and sold by 22:44 UTC on February 14 netted a combined $5.4 million in profits.
LIBRA’s total unique holders plunged from over 50,000 on February 14 to just 35,770 by February 18, as shaken investors scrambled to exit their positions.
