The LIBRA token, which gained massive popularity following Argentine President Javier Milei’s social media engagement, experienced a dramatic surge followed by a catastrophic collapse. A single tweet from President Milei initially propelled the token to an all-time high of $34.50, pushing its market capitalization to $4.5 billion. However, this success was short-lived as LIBRA plummeted by 92% within hours, erasing millions in investor funds.
The aftermath left many questioning whether LIBRA could ever regain its former glory. Let’s break down the events leading to this financial disaster and assess the token’s prospects.
LIBRA’s Collapse: How Investors Lost Millions
One prominent trader, known for capitalizing on Trump-related tokens, saw his gains turn into significant losses after investing in LIBRA. Here’s a closer look at his financial missteps:
- Melania Trump Token: Suffered a $617,000 loss.
- LIBRA’s Initial Investment: Put in $1.7 million, eventually selling at $136,000, resulting in a $1.56 million loss.
- Post-Retweet Reinvestment: Following Milei’s tweet, the investor injected $300,000 into LIBRA again, only to lose another $200,000.
The Crypto Whale’s Painful LIBRA Experience
Blockchain data from Lookonchain revealed that a large-scale crypto investor, often called a whale, faced even more devastating losses. The whale’s LIBRA investments resulted in a total loss of $2.78 million:
- Pre-Crash Gamble:
- Invested 17,450 SOL (approximately $3.25 million).
- Sold later for 3,200 SOL ($595,000), taking a $2.65 million hit.
- Post-Tweet Attempt:
- Invested an additional 2,855 SOL ($531,000).
- Sold at 2,159 SOL ($412,000), losing another 696 SOL ($129,000).
President Milei’s Response: No Financial Involvement
Amid growing criticism and potential legal actions, President Milei broke his silence. He categorically denied any involvement in promoting the token for personal gain. While he acknowledged meeting with the project’s creators, he insisted that his social media activity was not an endorsement or investment advice.
“I have no financial ties to the LIBRA token or its creators,” Milei stated in a press briefing. Despite these reassurances, the controversy has fueled calls for investigations and even impeachment discussions.
Can LIBRA Token Recover? A Daunting Challenge Ahead
The question of a potential recovery looms large over the LIBRA community. Data shows that approximately 75,000 investors collectively lost $286 million, marking the crash as one of the most significant in recent crypto history.
As of now, LIBRA hovers around $0.30, a far cry from its previous high of $34.50. To revisit that peak, the token would need to climb by an astonishing 1,360%—a feat that appears improbable under current circumstances.
Read more: XRP Dips Below $2.70 as Centralization Debate Escalates—What’s Next?
The Road to Redemption: What LIBRA Must Overcome
To regain investor trust, LIBRA’s developers have discussed potential compensation plans for those affected. However, skepticism runs deep within the community. The project’s future hinges on restoring confidence and stabilising an unpredictable market.
