- Libra token crashes 94% after insiders withdraw $107M, erasing billions from the market.
- Blockchain analysts reveal team wallets drained liquidity, triggering a massive investor sell-off.
- Milei deletes endorsement, blaming rivals, while traders face heavy losses from reckless speculation.
A financial disaster hit Libra token investors after insiders drained $107 million from the project. The token, backed by Argentine President Javier Milei, briefly soared to a $4.56 billion market cap. Within hours, the value collapsed by 94%. Wallets linked to the project team cashed out early, leaving retail traders with massive losses. The sudden crash raised questions about political endorsements in crypto and the risks of unchecked speculation.
Insiders Drain Millions, Triggering a Massive Sell-off
Blockchain analysts exposed the sell-off. Lookonchain reported that eight wallets linked to the team withdrew millions in SOL and stablecoins. This move erased billions from the market, leaving buyers trapped. Warnings about Libra token surfaced before the meltdown. Bubblemaps revealed that 82% of the supply remained unlocked and available for sale. The project failed to release key details, yet traders poured in, chasing profits.
Hype took over as greed clouded judgment. President Milei deleted his endorsement after the collapse. His post on X, which promoted the project, disappeared. Later, he blamed political rivals, but investors had already suffered heavy losses. The incident highlighted the dangers of high-profile endorsements in crypto.
Memecoin Mania Fuels Reckless Trading
Retail traders continue chasing celebrity-backed tokens, hoping for massive gains. The Trump-themed TRUMP and MELANIA tokens sparked a wave of memecoin speculation. Despite the risks, traders gamble on volatile assets, drawn by success stories.
A sharp-witted investor made $28 million on Feb. 14 from a new memecoin linked to Binance co-founder Changpeng Zhao’s dog. The profit seemed like expert timing, but whispers of insider access spread. These stories fuel speculation, creating a false sense of easy money.
The Libra token collapse serves as a harsh lesson—hype never replaces solid fundamentals. Memecoins may offer wild gains, but reckless speculation often leads to financial ruin. Crypto traders must separate fiction from reality before diving into the next viral token.
