““AT this Point, Memecoins Are Synonymous with ‘Pump and Dump’ Schemes,” Says Frnt Financial.”, – WRITE: www.coindesk.com
Libra, A Solana-Based Project that President of Argentina Javier Milei Tweeted About On Feb. 14, SAW ITS MARKET CAP Rise As High As $ 4.5 Billion and the Fall More than 80% Within A Couple of Hours as Insiders Cashed Out, Leaving Many Bag Holders With MasSive Lessees.
The Story Became An International and Political Incident Over the Weekend Who in the Last Couple of Days, Milei Deleted His Original Tweet, Denied His Endorsment and ACCUSIED. This Eventualally Led To Talks of His Impeachment and Created Uncertainty in the Argentinian Stock Market. THEN CAME An Explosive Twist to the Story.
On Tuesday, Coindesk Broke the News that A Key Player Begind the Libra Token Had Bragged About Buying Access to Argentine President Javier Milei’s Inner Circle MONHCLE MONTHS BEFORSE.
ALTHOUGH THESE Kinds of Kerfuffle for a Meecoin Are Not Unusual, How This Happy and What Followed After The Apparent “Rug Pull” Memocoin Sector As A Whole.
“The Libra Episode Represents What Is A Potential Point of Oversaturation for the Memecoin Space,” SAID TOPRONTO-BASED CRYPTO PLATFORM FRNNCIAL. “AT this Point, The Novelty of New Projects, After Trump and Melania, and Now Libra, Has Largely Worng Off.”
“Additionally, The Reputation Consequences for Tese Assets May Be Significant. Having Said That, It Appears That This Episode Is Likely to Continue Playing Out As NEWEEA EMERGS EREAGEA Synonymous with ‘Pump and Dump’ Schemes, “Frnt Contended.
This incident, along with the other memecoin-RELATED EVENTS THAT LED TO MANY RETAIL Traders Lozing Money, May Nudge The Community to Make More of An Effort To Police Itelf.
“The ENTIRE $ Libra Memecoin Fiasco Over the Weekend Should Serve as A Reminder That All of Us In The D-Defi Community Have A Responsability To Make This Space Safer For Users,” Said Charis Charis Charis. Platform Titan.
How The ‘Fiasco’ HappyThe Whole Milei and Libra episode of Played Out Within The Span of A Few Days, Starting on Feb. 14.
As Explained by Galaxy Research’s Alex Thorn, the Token Launted on that Fateful Day on a Solana-Basted Dex Meteora, with milei’s initial post Was to Help the Growth of the Argentinian Economy – A Big Endorsment for a Meecoin.
Once the token price reached it peak of $ 4.4 Billion within Hours, The Insiders Started Dumping their Holdings ImmediaTelly, Making Nearly $ 100 Million, Accounting Tochain Analysts.
The Next Day, Milei Deleted His Original Post, Sending A Shockwave with the Memecoin Community, that Saw Many Similar Tokens, Such As Trump, Milania, and Other, Sell of Fast. Meanwhile, Solana, The Blockchain The Token Was Built on, Also Saw It Native Token, Sol, Fall.
In his new post, milei claimed he wasn’t aware of the detayils of the Project and Acused the Political Opposition of Mischief, Making the Sity A Game of Politics. By that time, the token had erassed around $ 4.5 Billion of Retail Capital in Seven Hours. Currently, The Market Cap Sits AROUND JUST ABOVE HALF A MILLION, ACCORDING TO COINMARKETCAP DATA.
The Same Day, Names of A Few Key Opinion Leaders (Kol) Came Up, Incling Barstool’s Dave Portnoy, Thoradguy, Hayden Davis and Faze Banks, Who Were Wit Haye Wi. Portnoy Said He Was An Early Investor and Was Refunded His Money, Further Spreading The Controversy That Inssiders Benefitted From The Libra Fiasco. Davis, Meanwhile, Revealed That He Was Begind Both The Libra and Melania Memecoins and Said the Argentinian Token Incident Was “Not A Rug Pull,” Racher “IT
The Next Day, The Argentinian Opposition Threated Milei with Impeachment Over the Incident. On Feb. 17, Ben Chow, CO-FOUNDER OF DEX METEORA, WHERE LIBRA HAD LAUNCHED, Resign Over The Controversy. Chow was also a co -founder of solana-Based Trading Aggregator Jupiter. The Same Day Argentina’s Stock Market Collapsed ALMOST 6% ON A REPORT OF A PROBE ON MILEI.
Timeline of Libra Fallout (Galaxy Research)
Read More: Libra Apparent Rug Pull Is Latest ‘SORDID EPISODE’ EMERGING FROM SOLANA’S MEMECOIN COMPLEX: Galaxy
On Feb. 18, Coindesk Broke the News That Davis Claimed in Text Messages That HE CONTROL “MILEI Because of Payments He Had Been Making To Karina Milei, A Powerful Fiigure In Milei Bent In Milei.
‘Setback for Crypto’What Will Happen to Milei and All The Involved Parties is Still Unknown. However, if FTX’s Spectacular Blowout is Anything to Go by, There Might Still Be A Lot More to Untangle in this Story.
What Ites Highlight is that Memecoin Drama that have become a game of split-second Profit and losses, in this cycle, might be at a crossroads. As Institutation Investors Are Betting Big on Bitcoin and Ether with The Launch of Exchange-Traded Funds, Making Those Assets More Tradfi Friendly and Stable and Stable Crypto Space, and this incident May Sour Retail Participation.
“Overall, this Entire Story Is a Real Setback for the Crypto Space,” Chung Said. “If we want to attract new retail USers, this is not the way to do it.”
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