The last frenzy that began with the launch of Trump Memecoin of the president of the United States, Donald Trump, and saw the merchants doing and losing millions in a matter of minutes, could have collapsed with the Fiasco de Token Libra.
Libra, a Solana headquarters that the president of Argentina Javier Milei tweeted on February 14, saw its market capitalization up to $ 4.5 billion and then fell more than 80% in a couple of hours like the experts charged, leaving many holding bags with mass losses.
The story became an international and political incident during the weekend when in recent days, Milei eliminated his original tweet, denied his support and accused the political opposition of the mischief. This eventually led conversations about his political trial and created uncertainty in the Argentine stock market. Then came an explosive turn to the story.
On Tuesday, Coindesk gave the news that a key player behind the Token de Libra had boasted to buy access to the intimate circle of Argentine president Javier Milei months before the launch and a memecoin crash.
Although this type of kefuffle for a memory is not unusual, how this happened and what followed after the apparent “pull of the carpet” highlighted the risk of un controlled cryptography trade and the potential of a reputational success for the memecoras sector in Your set.
“The Episode of Libra represents what is a potential point of supersaturation for the Memecoin space,” said the co -to -based cryptographic platform in Toronto Frnt Financial. “At this point, the novelty of the new projects, after Trump and Melania, and now Libra, has greatly worn out.”
“In addition, the reputational consequences for these assets can be significant. Having said that, it seems that this episode is likely to continue playing as new details arise. At this point, memecors are synonymous with ‘pump and overturned schemes, overturned’, “Frnt” contempid.
This incident, along with other Memecoin related events that led many retail merchants to lose money, can push the community to make one more effort for surveillance.
“The entire memecoin fiasco of $ Libra during the weekend should serve as a reminder that everyone in the community defi we have the responsibility to make this space safer for users,” said Chris Chung, founder of the platform Swap Titan based in Solana.
How the ‘Fiasco’ happened
The entire episode of Milei and Libra developed within a few days, starting February 14.
As explained by Alex Thorn by Galaxy Research, the Token launched on that fateful day in a Dex Metelaje with headquarters in Solana, with the initial publication of Milei (now eliminated) on the social media platform X that said that the goal of Token It was to help the growth of the Argentine economy: a great support for a memory.
Once the Token price reached its peak of $ 4.4 billion in a matter of hours, experts began to download their holdings immediately, winning almost $ 100 million, according to Ochain analysts.
The next day, Milei eliminated its original publication, sending a shock wave within the Memecoin community, which saw many similar tokens, such as Trump, Milania and others, run quickly. Meanwhile, Solana, the block chain in which the token was built, also saw his native token, Sol,.
In his new position, Milei said he was not aware of the details of the project and accused the political opposition of the mischief, turning the situation into a policy game. At that time, the Token had erased around $ 4.5 billion of retail capital in seven hours. Currently, market capitalization is around half a million, according to CoinmarketCap data.
The same day, names of some key opinion leaders (KOL), including Dave Portnoy, Threadguy, Hayden Davis and Faze Barstool, who were involved in one way or another with the project, emerged. Portnoy said he was one of the first investors and that he was reimbursed his money, further spreading the controversy that experts benefited from Fiasco de Libra. Meanwhile, Davis revealed that he was behind the memecoins of Libra and Melania and said that the incident of the Argentine file “was not a carpet strip”, rather “is just a plan that came out miserably badly.”
The next day, the Argentine opposition threatened Milei with accusation for the incident. On February 17, Ben Chow, co -founder of Dex Meteora, where Libra had launched, resigned on the controversy. Chow was also co -founder of the Jupiter commercial aggregator based in Solana. The same day, the Argentina’s stock market collapsed almost 6% in a report of a probe in Milei.
Read more: APARENT LIBRA RUG PULL is the last ‘deafiness episode’ emerging from the Memecoin de Solana complex: Galaxy
On February 18, Coendesk gave the news that Davis said in the text messages that he could “control” Milei due to the payments he had been doing to Karina Milei, a powerful figure in the government of Milei and the president’s sister .
‘Crypto back’
It is still unknown what will happen with Milei and all the parties involved. However, if FTX’s spectacular burst is something to happen, there could still be much more to unravel in this story.
What it highlights is that Memecoin’s drama that has become a set of gains and divided losses, in this cycle, could be at a crossroads. As institutional investors are betting on Bitcoin and Ether with the launch of funds quoted in the stock market, which makes these assets more friendly and stable of tradfi, the Memecoin sector has faced itself as the ugly duckling of the cryptographic space, and this incident can sour retail participation.
“In general, this whole story is a real setback for cryptographic space,” Chung said. “If we want to attract new retail users, this is not the way to do it.”
