Study Shows LIBRA Memecoin Failure Led to $251M in Investor Losses

LIBRA Memecoin Crash Wipes Out $251M, Leaving Most Traders in the Red

Nansen data reveals that 86% of traders suffered losses, while a small group profited from the frenzy.

Argentina’s LIBRA memecoin, which briefly soared to a $4.5 billion market cap, has left investors reeling after a dramatic crash erased $251 million in wealth, according to blockchain analytics firm Nansen.

On-chain data shows that while some traders made $180 million in gains, the event was overwhelmingly negative for the majority—86% of investors ended up in losses, making it yet another case of how volatile memecoins can rapidly destroy value.
The Rapid Rise and Fall of LIBRA

LIBRA launched last Friday on Meteora, a decentralized exchange on Solana. The token’s value exploded after President Javier Milei posted on X, stating that the project aimed to “stimulate Argentina’s economy and support small businesses.”

This endorsement triggered a frenzy, with over 40,000 wallets pouring into the token. However, the hype quickly turned into panic as insiders dumped large amounts of LIBRA, sending its price into free fall. The token’s market cap plunged by 90% in hours, wiping out millions.
Political Fallout and Investor Losses

Milei later deleted his post, clarifying that he was “not aware of the project’s details” and would no longer promote it. But the damage was done—opposition leaders slammed the fiasco as an embarrassment and even suggested impeachment proceedings.

Nansen’s report shows that between February 16 and 18, 70% of wallets trading LIBRA ended up with realized losses, likely due to traders chasing the hype and buying at inflated prices. Meanwhile, two wallets that bought LIBRA at 22:01 UTC and sold within 43 minutes made a staggering $5.4 million in profits.

The number of unique holders dropped from over 50,000 on February 14 to just 35,770 by February 18, signaling a mass exit from the token as investors scrambled to cut their losses.