The collapse of Solana’s Libra memecoin sparked controversy and legal disputes, as well as renewed attention to the cryptocurrency market.
The token, which was once valued at $4,5 billion, plummeted by 95% in value over the weekend. Retail investors suffered heavy losses, and questions were raised about the insider trading activity within the memecoin industry.
CryptoSlate curated a few of the main talking points below, along with some community responses.
Argentina’s political turmoil
Argentina’s president, Javier Milei, has been spotlighted following the token’s crash.
Milei may have claimed that he simply shared information on LIBRA but his apparent endorsement fuelled investor interest prior to the collapse of the project.
However, he explained that he was introduced to LIBRA as a tool to help entrepreneurs access funding in Argentina’s informal economy. Critics accuse him, however, of encouraging reckless speculation that has resulted in legal challenges, and even threats to impeachment.
Milei, who has been at the center of the recent controversy, acknowledged the necessity to revisit his strategy for engaging the public.
Plan for a Nigerian Memecoin
Beyond Argentina, reports suggest that the LIBRA team explored launching a separate token in partnership with Nigeria’s government administration members.
Kelsier Ventures – the company in the middle of controversy – allegedly talked about releasing a token based on Solana and linked to Nigerian politics.
Although there are no proofs that directly link the Nigerian President Bola Tinubu, it is claimed by sources that some of Tinubu’s associates may have been involved.
An insider has described the project in this way: “far along”Before the project stalled. If confirmed, these allegations would further undermine trust in crypto-related ventures that are politically aligned.
Meteora co-founder resigns
Ben Chow stepped down as co-founder, of Solana’s Meteora Platform, amid accusations that insider trading was involved in the launch of high-profile memecoin.
Meteora has previously supported controversial tokens related to Donald Trump, raising concerns regarding its handling of early access and liquidity.
On Feb. 18, Meow, the co-founder of Meteora and Jupiter, confirmed Chow’s resignation, citing leadership missteps. He insisted, however, that neither Meteora nor Jupiter had engaged in any financial misconduct.
Meow says:
“While I am 100% confident about Ben’s character, as a project lead he has also shown a lack of judgement and care about some of the core aspects of the project (given its current size and reputation) over the past couple of months.”
Chow also stated that, while his team had been aware of LIBRA weeks prior to its launch, they were only involved in IT assistance, which included verifying the token’s legitimacy and offering advice about liquidity.
What’s next for Memecoins
LIBRA’s collapse has intensified the debate over the sustainability of memecoins.
DFarmer is a well-known crypto trader who suggested the crash as inevitable. According to him, constant cycles of speculating, rapid launches and market manipulation would lead to a reckoning.
According to him
“This game doesn’t end until every rotation rug is faster, more damaging and more efficient. Every buyer bled dry. No survivors, no relief rallies. Just pure, surgical devastation.”
Samson Mow of JAN3 believes this trend will continue, as speculation is deeply ingrained in the cryptoculture.
Jesse Pollak of Base Developers echoed the concerns expressed by other builders, saying that similar projects would reappear under different branding as long as developers do not push for significant change.
The writer wrote:
“A few days from now, the same people will be back selling us the same shit wrapped in a slightly different wrapper (eg new celeb, new air of legitimacy, etc). only way for this industry to get off the treadmill is for long term thinkers to build a better future.”
In the aftermath of the scandal, industry will be scrutinized for regulatory issues, ethics, and risk associated with memcoin speculation.
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