The LIBRA memecoin scandal that rocked Argentina over the weekend destroyed millions of dollars in investor wealth, according to research by Nansen.
On-chain data tracked by Nansen show 86% of traders lost a total of $251 million, while the winners secured just $180 million in profits. In other words, it was a “net-negative wealth-generating” event that potentially sucked out liquidity from the market.
The episode is a stark reminder that tokens associated with political figures can be just as risky as random memecoins and celebrity cryptocurrencies in making or breaking fortunes within minutes.
LIBRA debuted on Meteora, a Solana-based decentralized exchange, last Friday and quickly surged to a market cap of over $4.5 billion after Argentina’s President Javier Milei said on X that the project backing the coin would “focus on encouraging the growth of the Argentine economy, funding small businesses, and Argentina ventures.”
Over 40,000…
