Shock: The collapse of LIBRA causes traders to lose 251 million dollars

LIBRA was launched on February 14, 2025, after Argentine President Javier Milei confirmed on X. The token was shaped as an economic support tool in Argentina. Thousands of traders immediately reacted to the launch of LIBRA by participating as it reached a market capitalization of 4.5 billion dollars. Rapid selling activities from insiders led to a quick market decline. The LIBRA casting took place at 21:38 UTC before Chairman Javier Milei tweeted about it at 22:01 UTC. The price reached $4.55 in 44 minutes but collapsed just a few minutes later. Many traders suffered financial losses after losing their advantage to early traders who withdrew with significant profits. According to data on the Nansen tracking chain, two addresses that bought and sold during this period made $5.4 million, and one wallet alone secured $5.1 million. After the collapse of the token, Milei deleted his confirming tweet, distancing himself from the project. Meanwhile, one of the parties involved, Hayden Davis, dismissed LIBRA as a meme currency. By February 18, the number of unique holders had decreased from 50,700 to 31,957. According to the data on the chain, 15,431 wallets have experienced significant increases or decreases exceeding $1,000. Among them, 86% faced a total loss of $251 million, while 2,101 wallets made a profit of $180 million. The largest winning wallet earned $25 million, while the 15 most severely affected wallets lost a total of $33.7 million. Despite the incident, some wallets continue to trade LIBRA. A tweet on February 17th from Milei caused a short-term price spike of 125%, but recovered within 24 hours. In addition to LIBRA, Solana's liquidity has decreased from $12.1 billion to $8.29 billion. Although Solana is not directly involved, the turmoil surrounding LIBRA has affected market sentiment. The collapse of LIBRA has highlighted the risks of politically supported tokens as insiders make millions while retail traders incur losses.