Insiders Profit $107 Million from LIBRA Memecoin Before Collapse
Insiders withdrew $107 million from the crypto market after President Javier Milei backed the LIBRA memecoin, which quickly collapsed following a rescindment of support. An analysis revealed substantial profits by the LIBRA team, while the token saw a dramatic 92% drop from its peak value, emphasizing the volatile nature of cryptocurrency investments.
Insiders in the cryptocurrency market reportedly withdrew over $107 million following the endorsement by Argentinian President Javier Milei for a memecoin aimed at fostering economic growth in Argentina. The coin, named LIBRA, was introduced with a Solana contract address in a post by Milei, which has since been deleted.
LIBRA’s market capitalization surged to $4 billion within a few hours, but its value quickly plummeted after Milei rescinded his support. In a statement, Milei conveyed his surprise at being unaware of the intricacies of the project and expressed regret for his prior endorsement of what he believed was a private venture.
Lookonchain, a blockchain tracking organization, noted that the LIBRA team profited by liquidating their tokens, amassing 57.6 million USDC and 249,671 SOL, which amounts to approximately $107 million. These funds were generated through various liquidity transactions, including the addition and removal of liquidity.
Currently, LIBRA is trading at a staggering 92% decrease from its peak value. This situation draws attention to the risks associated with rapid endorsements and speculative investments in the cryptocurrency sector.
Sound investment strategies demand caution and diligence, particularly in volatile markets such as cryptocurrencies, where swift changes in value can lead to significant financial losses. Potential investors are advised to conduct thorough research before engaging in high-risk investments.
The incident surrounding the LIBRA memecoin illustrates the potential pitfalls in the cryptocurrency market, especially when high-profile endorsements are involved. Insiders successfully profited while retail investors faced significant losses due to the rapid decline in the token’s value. This serves as a reminder of the importance of diligent research and careful consideration in investment practices. Additionally, President Milei’s experience highlights the need for transparency and caution regarding endorsements in the crypto space. Overall, investors must remain vigilant and informed to mitigate risks in their investment endeavors.
Original Source: dailyhodl.com
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