"LIBRA MemeCoin's $251M Loss: Argentine President's Endorsement Fails to Save Volatile Token"

The LIBRA memecoin saga has left investors with massive losses, totaling $251 million, according to an on-chain analysis by Nansen. The event, which saw over 86% of traders incur significant losses, generated a net negative wealth of $71 million in a bearish market.

The rapid rise and fall of LIBRA, which started trading on Solana’s Meteora network, served as a stark reminder of the volatility and risks associated with meme coins backed by political figures. The Argentine President's endorsement initially drove the coin's market cap to $4.5 billion within 48 hours, but the bubble soon burst, with the market cap plummeting by 90% in a single day.

The sudden surge and subsequent crash left around 90% of investors who had rushed in to buy LIBRA with significant losses. The removal of a promotional X post from President Milei's handle, which had initially fueled the coin's popularity, further exacerbated the situation. Around 70% of tokens trading in LIBRA between the 16th and 18th ended with losses, as investors hoped for a retweet from Milei to drive the price back up.

Coin experts have warned that investors should be cautious when considering meme coins endorsed by political figures, as the chances of success in the market are highly volatile. They advise taking the time to reevaluate celebrity coins before investing, as the LIBRA fiasco has demonstrated the potential for significant losses in a short period.