- $LIBRA soared to $4.56 billion then crashed 95% after Milei’s endorsement and insider cashouts.
- Solana’s SOL dropped 25%, losing $20 billion in market value since February 14.
- Memecoin market, valued at $74.31 billion, faces a trust crisis as hype fades.
- Insider trading allegations and Milei’s legal woes threaten Solana’s DeFi cred.
- Experts see a potential shift to sustainable DeFi projects amid memecoin fatigue.
Argentina’s President Javier Milei and his ill-fated $LIBRA memecoin. Is this the end of the memecoin hype? And what does it mean for decentralized finance (DeFi) as we know it?
On February 14, Milei tweets about $LIBRA, a Solana-based token pitched as a lifeline for Argentina’s small businesses. The market goes wild—$LIBRA’s value skyrockets over 3,000%, hitting a $4.56 billion market cap in hours.
But then, the rug gets pulled. Insiders allegedly cash out $107 million, the token crashes 95% to a measly $0.19 per unit, and Milei deletes his tweet like it never happened.
Solana’s native token, $SOL, takes a hit too, dropping 25% from $205 to $161 since the fiasco began, wiping out roughly $20 billion in market value.
Final straw for memecoins?
These tokens—think Dogecoin, Shiba Inu, and now $LIBRA, thrive on hype, not fundamentals. When Milei, a self-proclaimed libertarian, threw his weight behind $LIBRA, it wasn’t just another celebrity endorsement; it was a government-backed promise that turned into a textbook pump-and-dump.
“Argentina’s Pres Milei shills LIBRA… ends up mirroring Trump’s degeneracy,” quips an X user, nodding to similar flops like the TRUMP and MELANIA tokens, which lost 80% and 70% of their value respectively since January.
The memecoin category’s market cap, once at $74.31 billion, is now reeling, and Solana’s memecoin slice—$10.23 billion—feels the heat most.
Solana
This isn’t just about lost money; it’s about lost trust. Solana’s been a darling of DeFi, loved for its low fees and speedy transactions.
Yet, this mess has dragged its reputation through the mud. Insider trading accusations are flying—Hayden Davis, the 28-year-old behind $LIBRA, admitted to sniping the token and pocketing $100 million, though he claims he’s not keeping it.
Coffeezilla’s interview with Davis revealed a shady memecoin underbelly: “That’s how [key opinion leaders] make their money,” he said, hinting at a system rigged for insiders. Meanwhile, Solana’s Total Value Locked (TVL) is dipping, and projects like Meteora and Jupiter are scrambling to distance themselves from the fallout.
© 2024 Cryptopress. For informational purposes only, not offered as advice of any kind.
