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A scandal involving the LIBRA altcoin in Argentina has led to significant financial losses for investors. According to blockchain analysis firm Nansen, 86% of investors collectively lost $251 million, while the winners only gained $180 million. This incident highlights the risks associated with altcoins linked to political figures.
Price Soars and Then Crashes
The LIBRA coin gained substantial attention when it began trading on the decentralized exchange Meteora, built on the Solana 
$157 blockchain. A social media post by Argentine President Javier Milei spurred a rapid increase in the altcoin’s value. Milei claimed that the project would revitalize the Argentine economy and support small businesses.
Investors quickly began purchasing the altcoin, with over 40,000 wallets investing in LIBRA. Its market capitalization surged beyond $4.5 billion. However, when insiders started selling off large quantities of the coin, the price plummeted suddenly. Within hours, LIBRA’s market value dropped by 90%.
Majority of Investors Suffered Losses
Milei later deleted his social media post and stated that he was unaware of the project’s specifics. Yet for investors, it was already too late. The opposition in Argentina condemned the events as a major scandal, calling for Milei’s resignation.
Nansen’s research indicates that 70% of wallets trading LIBRA from February 16-18 incurred losses. Many investors aimed to profit after Milei’s announcement, but the price crash exacerbated their losses.
The number of investors holding the altcoin dropped from over 50,000 on February 14 to 35,770 by February 18. Some investors, however, managed to profit significantly. According to reports, two wallets bought LIBRA coin at 22:01 on February 14 and sold it at 22:44, netting a total profit of $5.4 million.
These events have once again proven how speculative and dangerous meme coins can be. It starkly underscores the need for caution when investing in altcoins, especially those backed by political figures or celebrities.
