Investors Lose $251 Million in Milei-Linked LIBRA Memecoin Collapse

LIBRA Memecoin Scam Costs Investors $251M as 13,000+ Wallets Face Losses

  • Over 13,000 investors suffered collective losses of $251 million in the LIBRA memecoin incident.
  • 86% of wallets with transactions over $1,000 recorded losses in the scheme.
  • 2,101 profitable wallets managed to secure $180 million in gains.
  • The token gained attention after being shared by Argentine President Javier Milei.
  • Blockchain analytics firm Nansen conducted comprehensive analysis tracking wallet-level performance.

A massive pump-and-dump scheme involving the LIBRA memecoin has resulted in substantial losses for thousands of crypto investors, with blockchain analytics firm Nansen revealing the extent of the damage in their latest research.

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According to Nansen’s detailed analysis, the scheme affected 15,430 wallets that conducted transactions exceeding $1,000, with a staggering 86% of these wallets recording losses. The total damage amounts to $251 million, highlighting the devastating impact of the incident on retail investors.

The investigation revealed a stark contrast in outcomes, as a minority of traders managed to profit from the volatile token. Approximately 2,101 wallets successfully extracted $180 million in gains, demonstrating the zero-sum nature of such speculative trading.

The incident gained particular notoriety after Argentine President Javier Milei shared content related to the token on social media platform X, inadvertently lending credibility to the project. This presidential attention likely contributed to increased investor interest and subsequent losses.

This case represents one of the largest documented memecoin-related losses in recent crypto history, serving as a stark reminder of the risks associated with speculative cryptocurrency investments. A pump-and-dump scheme typically involves artificially inflating an asset’s price through misleading statements before selling the holdings at the elevated price, leaving later investors with significant losses.

The incident has prompted renewed calls for improved regulatory oversight in the cryptocurrency sector, particularly concerning memecoin projects that lack fundamental value propositions.

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