Why is Solana (SOL) Falling? Is the Only Reason the LIBRA Scandal? According to Analysts, Everything Started with TRUMP!

The cryptocurrency market has been shaken in recent days with the Libra (LIBRA) scandal, and the support for Bitcoin by Argentine President Javier Milei has further fueled the events.

While Solana (SOL)-based memecoin LIBRA is being discussed in the market, Galaxy Research stated that the LIBRA project is a scam, negatively affecting the Solana ecosystem.

According to Coindesk's report, Galaxy Research has reported that the LIBRA token scandal has negatively affected Solana's memecoin market and the situation could worsen further.

Analysts have noted that since the launch of LIBRA, Solana has significantly declined against both the US dollar and Ethereum.

Galaxy claimed that TRUMP, Donald Trump's token memecoin, has shaken investor confidence by withdrawing a large amount of liquidity from the market, and asserted that the Solana and SOL memecoin sector has actually faced difficulties since the launch of TRUMP into the market.

Galaxy Research research president Alex Thorn said the following:

The LIBRA incident is the ugliest event in the Solana memecoin ecosystem after its launch by TRUMP in January and reaching a valuation of 75 billion dollars.

LIBRA issuer, Kelsier CEO Hayden Davis, rejected claims that the project is a rug pull, arguing that it is simply a failed plan with only 100 million dollars still under control.