Market Insight: The LIBRA Collapse
The LIBRA token, promoted by Argentine President Javier Milei on his official X account, crashed 85% within hours after its developers drained $87 million in USDC and SOL from liquidity pools. Blockchain analytics firm Bubblemaps revealed that 82% of the token’s supply is held by connected addresses, sparking centralization concerns.
Key Analysis:
- Liquidity Withdrawal: Developers removed funds shortly after LIBRA’s launch, triggering a freefall from a $4.5 billion FDV to near-zero.
- Insider Profits: On-chain analyst EmberCN identified at least three addresses earning $20 million through coordinated buys and dumps.
- Project Links: LIBRA is tied to KIP Protocol, a Web3-AI framework backed by Animoca Ventures, raising questions about legitimacy.
Bitcoin & Regulatory Context
Coinbase’s Head of Product, Conor Grogan, warned:
“Assume this is a scam… these large launches are planned in advance with multisigs.”
Why It Matters:
- Centralization Risks: 82% token concentration undermines decentralization promises.
- Global Precedent: Follows the Central African Republic’s failed CARmemecoin,whichcrashedfrom1B to $20M post-launch.
Meme Culture & Investor Fallout
- Retail Losses: Top 100 holders faced 56% losses from the initial $1.6 purchase price.
- Case Study: Similar to DOGE’s volatility, LIBRA highlights meme-driven projects’ risks.
Colin Winston
