- A Nansen report revealed that 86% of LIBRA traders suffered losses, highlighting the risks of speculative crypto investments.
- Investigations into Milei’s involvement and potential insider trading raise concerns about market manipulation in the crypto space.
According to a recent report by blockchain research firm Nansen, 86% of traders who traded the LIBRA token lost money. The whole is from the pockets of investors when over $251 million vanished. On the other side, a small number of traders came out as winners with earnings of around $180 million. How could that be achieved?
The Sudden Boom and Bust of LIBRA
A few days ago, the CNF reported something shocking. Argentine President Javier Milei reshared a tutorial on the LIBRA token. What happened next? Like fire catching gasoline, the price of this token immediately jumped 60% in just a short time.
Previously, LIBRA dropped drastically, trapping most investors at the top value and causing significant losses. Imagine if someone acquired this token hoping to turn a quick profit and discovered the price was significantly declining before they could sell. This is the fate thousands of LIBRA traders experienced.
Early Sellers Walk Away With Millions
A few investors turned out to be winners while other traders were left in a lurch. A limited number of traders pocketed gains of up to $180 million, according to on-chain data. Who are they, one wonders?
Suspected to be connected to the token’s developer are several digital wallets identified selling at peak price. This is not the first time the crypto space has seen this kind of trend. Those that had advance knowledge seemed to be able to leave before the price fell.
Not only that, eight of the wallets noted removing almost $99 million from the LIBRA ecosystem prior to everything falling apart.
Legal Scrutiny Intensifies Over LIBRA Collapse
The LIBRA scandal is growing in the middle of this chaos. Milei’s involvement in pushing this token is under inquiry by Argentina’s Anti-Corruption Office. Meanwhile, prosecutors in the United States are also considering legal action against the CEO of LIBRA.
This is not just an ordinary crypto project failure. There are many unanswered questions. Did Milei really know the risks of this token before sharing it? Or was this just a coincidence? What is clear is that for investors who have already suffered losses, the answer to this question will not be able to return their lost funds.
When Hype Turns Into Financial Ruin
The LIBRA phenomenon reminds us of how cruel the cryptocurrency scene is. Too quick price jumps might lead to unavoidable damage. Not alone, LIBRA, similar circumstances have happened numerous times in the world of meme coins and other speculative initiatives.
Is there therefore any way investors may escape such traps? One thing is for sure: always be cautious of tokens that suddenly gain popularity, particularly if public figures support them. Momentary euphoria has a history of usually leading to devastation.
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