Solana and XRP Drop, Libra Meme Coin Sparks Drama
Hello traders, welcome back to Boztech Blogs! Another day, another twist in the crypto world. It’s almost like we wake up knowing something big is happening, and trust us, crypto never disappoints. Whether it’s a new scam, controversy, or unexpected turn of events, there’s always something going down. So, what’s the latest scoop today? Let’s find out!
The crypto market fell on Monday 17th February as everyone observed president’s day. During a dip traders took profits and waited for new triggers to guide their next moves, especially with the U.S. off for President’s Day.
Solana (SOL) and XRP were hit the hardest, both down by 4%. Bitcoin (BTC) fell by 1.1%, BNB Chain’s BNB dropped 0.5%, and Dogecoin (DOGE) lost 3%. Meanwhile, Cardano’s ADA and Ethereum (ETH) saw a nice bounce, both up by 2% by midday in Europe. Jupiter’s JUP token dropped 9%, making it the biggest loser among mid-sized cryptocurrencies. The decline is likely due to its suspected links to the controversial LIBRA coin, which has been a source of criticism.
LIBRA Memecoin Controversy That Shook the Crypto World
The world of cryptocurrency is often seen as a volatile space, where fortunes are made and lost in the blink of an eye. But every now and then, a story comes along that takes the drama to a whole new level. The rise and fall of Libra memecoin is one such story, a story of hype, scandal, and billions of dollars wiped out in an instant.
What started as a meme-inspired coin quickly spiraled into one of the most devastating rug pulls in recent crypto history. Libra was initially hyped as an official Argentine cryptocurrency, only to collapse just hours after its meteoric rise. This is the story of how Libra made waves in the market, how its rapid ascent caught the attention of investors worldwide, and how its shocking crash left a trail of destruction in its wake.
What Is Libra Memecoin?
Libra was a memecoin, one of those cryptocurrencies that’s created less for its technological advancements and more for its viral potential. Memecoins typically rise to prominence due to social media attention, internet communities, and influencer endorsements, rather than any real-world use case or utility.
Launched in February 2025, Libra initially appeared to be just another memecoin, a joke in the crypto space. But things took an unexpected turn when it gained the attention of Argentine President Javier Milei, who seemingly endorsed the project, causing a frenzy in the market.
The Controversial Presidential Endorsement
The Libra memecoin didn’t just rise on its own; it had a major political figure behind it. On a Friday, President Javier Milei posted a tweet on his official X (formerly Twitter) account, boasting about Libra’s potential to boost the Argentine economy. With over 3.8 million followers, Milei’s tweet drew immediate attention, and some even speculated that the government might be backing the coin.
The tweet, which was later deleted, linked directly to the Libra project. The idea that a national leader was promoting a cryptocurrency sparked curiosity, causing many to believe that Libra might be an official government-backed venture. This endorsement, albeit briefly, was enough to send the price of Libra through the roof.
A Meteoric Rise
Within hours of its launch, the Libra token saw a staggering price increase. Its value surged by 3,000 percent, pushing its market cap to an astonishing $4.5 billion (roughly Rs. 39,090 crore). The frenzy that followed was nothing short of chaotic, as crypto enthusiasts and investors scrambled to get a piece of what they believed was a groundbreaking project.
This price explosion seemed to confirm the speculative belief that Libra could revolutionize the Argentine economy. The coin was being hailed as the next big thing in crypto space, and it appeared as though nothing could stand in its way.
The Devastating Collapse, A Coordinated Rug Pull
But just as quickly as it rose, Libra’s value began to plummet. Within hours of reaching its peak, the coin’s price crashed, leaving investors in shock and disbelief. What had been a thrilling ride to the top turned into an instant disaster.
Libra’s crash wasn’t just a case of market correction. Analysts soon recognized it as a classic “rug pull”, a type of scam where developers launch a cryptocurrency, inflate its value, and then abandon the project, leaving investors with worthless tokens. Insiders cashed out, taking their profits while the market tanked. What followed was a massive liquidity drain across the crypto market, as funds that had been funneled into Libra were pulled out, leaving other altcoins struggling to survive.
The Ripple Effects on the Crypto Market
The fallout from Libra’s collapse had far-reaching consequences. The broader cryptocurrency market, already struggling with a liquidity crunch, took a significant hit. Libra’s rise had attracted fresh investment into the altcoin sector, but its fall drained the market of much-needed liquidity. The situation echoed a similar pattern seen in previous memecoin explosions, such as the rise and fall of the TRUMP memecoin, which skyrocketed to a $75 billion market cap before quickly collapsing. Click here to read.
While Libra’s market cap briefly soared to $4.5 billion, it ultimately failed to bring new capital into the crypto space. Instead, it redistributed existing funds, leading to a widespread loss of confidence among investors and traders.
The Aftermath
As if the financial devastation weren’t enough, the scandal surrounding Libra’s collapse quickly spilled into the political arena. President Milei, who had previously endorsed the coin, found himself at the center of corruption allegations. Critics accused him of either knowingly promoting a fraudulent project or being recklessly negligent in supporting it. The controversy sent shockwaves through Argentina’s political establishment, further deepening the mistrust surrounding both the cryptocurrency and the government’s involvement.
The scandal has also led to increased scrutiny of memecoins as a whole. What began as an exciting experiment in the crypto world now serves as a caution about the dangers of hype, unchecked endorsements, and the risks of investing in projects that lack transparency and accountability.
Wrapping up
The story of Libra memecoin is one that every cryptocurrency investor should learn from. It serves as a reminder of the volatility and unpredictability that come with investing in the world of digital currencies. While there are opportunities for significant rewards, there are also huge risks, especially when it comes to memecoins that lack solid foundations.
As Boztech always advises while moving forward, it’s crucial to exercise caution, do thorough research, and avoid getting swept up in the frenzy of the latest viral crypto craze. The rise and fall of Libra has shown us just how quickly fortunes can change, and how devastating those changes can be when they involve billions of dollars.
