Digital Whale Lost 2.78 Million USD in the Brutal Collapse of $LIBRA

According to sources, the cryptocurrency market has witnessed significant volatility after Argentine President Javier Milei promoted the $LIBRA token. This endorsement led to a dizzying increase and subsequently a dramatic decline in the value of $LIBRA, causing significant financial losses for investors, including famous figures and large-scale holders. The rapid rise and fall of $LIBRA On February 14, 2025, President Javier Milei used his official social media platforms to confirm a new cryptocurrency, $LIBRA. He described it as a private initiative aimed at boosting Argentina's economy by sponsoring small businesses and entrepreneurial projects. The president's endorsement has immediately led to an increase in the value of $LIBRA, with its market capitalization soaring to an estimated $4.5 billion within a few hours. However, this rapid price increase did not last long. The main parties involved, who hold a significant portion of the tokens, have liquidated about 90 million dollars' worth of $LIBRA, causing its value to plummet and resulting in significant losses for many investors.

Whale Investors: Those Who Suffer the Most Losses Among those most affected are the "whales" - entities holding large amounts of cryptocurrency. A notable case involving an initial whale invested 17,450 SOL (approximately $3.25 million) into $LIBRA. Following the token incident, this investor sold their stake for only 3,200 SOL (around $595,000), resulting in a massive loss of $2.65 million. Another famous figure, David Portnoy, had to bear a loss of over $5 million due to the collapse of $LIBRA. In a surprising move, Hayden Mark Davis, one of the project's main proponents, compensated Portnoy $5 million in USDC. This repayment action is unique, as no other investors received a similar compensation, leading to widespread criticism and raising questions about preferential treatment. Consequences: Legal and political consequences The consequences of the $LIBRA disaster are not limited to financial losses. President Milei faces intense backlash for his role in promoting cryptocurrency. Critics accuse him of involvement in a 'rug pull' scam - a fraudulent scheme in which developers inflate a project to attract investment before withdrawing funds and abandoning the project. Legal complaints have been filed, alleging fraud and criminal conspiracy, and opposition lawmakers have called for Mr. Milei's impeachment. In response, President Milei has denied any involvement in the development of $LIBRA and has initiated an anti-corruption investigation to address the allegations. Impact of Investors: Look Closer The collapse of $LIBRA has deeply impacted the investor community. Data shows that nearly 75,000 traders have suffered losses, with an estimated total financial damage of about 286 million dollars. The distribution of affected investors is as follows:

The average loss per trader is about $3.833, indicating widespread devastation among both small and large investors. Market volatility: The role of Meme coins The $LIBRA incident highlights the inherent instability of "meme coins" - cryptocurrencies that become popular primarily through hype and social media validation rather than intrinsic value or technological innovation. These tokens are often characterized by rapid price fluctuations and susceptibility to market manipulation. The $LIBRA case serves as a cautionary tale, emphasizing the risks of investing in assets lacking fundamental support and transparency. Conclusion: Lesson learned The $LIBRA disaster emphasizes the importance of due diligence in the cryptocurrency space. Investors are encouraged to carefully research projects, assess the credibility of confirmations, and be cautious of tokens with rapid price increases that are not explained. This incident also highlights the need for regulatory oversight to protect investors from fraudulent schemes and ensure greater transparency in the cryptocurrency market. When the dust settles, the $LIBRA film serves as a stern reminder of the hidden pitfalls in the rapidly evolving world of digital currency, reinforcing the notion that not everything that glitters is gold.