TLDR
- 86% of LIBRA memecoin traders lost money, with total losses reaching $251 million while winners made $180 million
- Argentina’s President Milei initially endorsed LIBRA but later deleted his post, claiming he was unaware of project details
- Two early trading wallets made over $5.4 million in profits within 43 minutes of launch
- Dave Portnoy lost $6.3 million but later received a $5 million refund
- The token’s market cap fell 90% after insiders sold large quantities, leading to political backlash in Argentina
The LIBRA memecoin, initially endorsed by Argentina’s President Javier Milei, has resulted in massive losses for thousands of crypto traders.
Data from blockchain analytics firm Nansen reveals that 86% of traders lost money in the incident, with total losses amounting to $251 million.
The token launched on February 14, 2025, at 21:38 UTC on Meteora, a Solana-based decentralized exchange. The project gained immediate attention after President Milei posted on X (formerly Twitter) at 22:01 UTC, stating that LIBRA would “focus on encouraging the growth of the Argentine economy, funding small businesses, and Argentina ventures.”
The presidential endorsement caused the token’s value to surge rapidly. Within an hour of its creation, LIBRA reached a market capitalization of $4.5 billion, attracting over 40,000 crypto addresses. However, the momentum reversed dramatically when large token holders began selling their positions.
On-chain data shows that two wallets made exceptional profits during the token’s brief price spike. These addresses purchased LIBRA at 22:01 UTC and sold by 22:44 UTC on February 14, securing combined profits of $5.4 million. One wallet, identified as HyzGo2, gained $5.1 million from these trades.
The project involved several key figures, including Hayden Davis, who described himself as “the facilitator,” and Julian Peh from Kip Protocol, who Davis referred to as “the team.” Other involved parties included Mauricio Novelli and Manuel Godoy from Tech Forum Argentina.
The situation worsened when Davis later characterized LIBRA as “just a memecoin,” contradicting its initial presentation as an economic development tool. President Milei subsequently deleted his endorsement post and stated he “was not aware of the details of the project.”
Dave Portnoy
The rapid collapse affected many high-profile traders, including Dave Portnoy, who lost $6.3 million in the incident. However, Portnoy later received a $5 million refund, as confirmed by both Davis and Portnoy himself.
Analysis of trading patterns reveals that 15,431 wallets had absolute gains or losses exceeding $1,000. While 2,101 wallets managed to secure profits totaling $180 million, the majority experienced losses. The data shows 23 wallets lost over $1 million each, with combined losses in this group reaching $40.9 million.
By February 18, the number of unique token holders had fallen to 35,770 from the initial 50,000. Some traders continued to hold positions, with 1,001 wallets showing unrealized losses of approximately $11 million, while 71 wallets maintained unrealized gains of $540,000.
The fallout extended beyond direct traders. The Solana blockchain, which hosted the LIBRA token, saw its native SOL token decline by 16% following the incident. Platform liquidity dropped from $12.1 billion to $8.29 billion according to DefiLlama data.
The opposition in Argentina called the episode an international embarrassment and threatened impeachment proceedings against President Milei.
Trading data between February 16-18 shows 70% of wallets trading during this period registered losses, even after a brief price surge following another social media post from Milei on February 17.
Investigation of blockchain transactions revealed complex relationships between successful traders. One of the most profitable wallets earned $6.5 million and showed connections to various crypto entities including Bybit and several known trading accounts.
