Solana’s Memecoin Frenzy Takes Another Hit as LIBRA Appears to Rug Pull: Galaxy

LIBRA Collapse Adds to Solana’s Growing Memecoin Turmoil

Solana’s price is struggling as yet another memecoin disaster unfolds, with both its USD and ETH trading pairs suffering losses.

A report from Galaxy Research on Monday highlighted the apparent rug pull of LIBRA as the latest controversy to hit Solana’s speculative token scene. This follows a broader downturn in sentiment, which began with the launch of TRUMP in January and the liquidity drain it caused. LIBRA’s implosion could further weaken the ecosystem, diminishing demand for SOL, which has largely been driven by speculation in its memecoin sector.

Since LIBRA’s rise and fall, Solana (SOL) has plunged 8.6% in 24 hours, trading at $168.73 at the time of publication.

LIBRA’s collapse is also making waves in Argentina, where President Javier Milei—who previously endorsed the token as a financial tool for small businesses—is now facing political backlash, including impeachment threats. The memecoin surged to a staggering $4.5 billion market cap before crashing by 90%, leaving investors burned.

“This is just another chapter in the ongoing Solana memecoin saga,” said Alex Thorn, head of research at Galaxy. “The sector has been in steady decline since TRUMP’s brief rally to a $75 billion fully diluted valuation (FDV) in January.”

Adding to the controversy, Kelsier CEO Hayden Davis admitted that his team had not only launched LIBRA but was also behind MELANIA. He further revealed they had sniped both contracts at launch for personal gains.

“This wasn’t a rug pull,” Davis told crypto investigator Coffeezilla. “It was just a strategy that completely fell apart, and now I’m left managing $100 million in a way I never intended.”

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