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

New on-chain data reveals that 86% of traders lost money, with the LIBRA token’s collapse draining liquidity from the crypto market.

Argentina’s LIBRA memecoin saga turned into a financial disaster over the weekend, with traders collectively losing $251 million, according to blockchain analytics firm Nansen.

On-chain data shows that while a handful of traders managed to secure $180 million in profits, the vast majority—around 86%—suffered losses. Analysts describe the event as a “net-negative wealth transfer,” with more money exiting the ecosystem than staying in circulation.

A Rapid Rise and an Even Faster Fall

LIBRA launched on Meteora, a decentralized exchange on Solana, last Friday. It skyrocketed to a market capitalization of $4.5 billion following a viral endorsement from Argentine President Javier Milei, who posted on X that the project would “support Argentina’s economy, fund small businesses, and promote innovation.”

Investor enthusiasm was immediate, with over 40,000 wallets pouring into the token. However, the rally was short-lived—large holders quickly offloaded significant portions of their holdings, causing the market cap to crash by 90% within hours.

Political Fallout and Investor Fury

Milei later deleted his X post, stating he had “no prior knowledge” of LIBRA’s specifics and had chosen to distance himself from the project. However, his initial endorsement had already fueled a speculative frenzy, leaving thousands of investors in the red.

The backlash was swift. Opposition lawmakers called the incident an embarrassment to the nation and even raised the possibility of impeachment proceedings.

“70% of wallets trading $LIBRA between February 16 and 18 ended with realized losses, as many attempted to capitalize on the hype generated by Milei’s post,” Nansen reported.

Further data showed that LIBRA’s unique holders dropped from over 50,000 on February 14 to just 35,770 by February 18. Meanwhile, two early traders who bought in at 22:01 UTC and sold by 22:44 UTC on February 14 made a combined profit of $5.4 million—showcasing how a small group benefited while most suffered heavy losses.