Solana’s value took an alarming dip on Tuesday, crashing over 10% amid the fallout from the Libra memecoin chaos.
What’s Going On? Solana’s slump to $165.77, now down nearly 20% over a week, is standing out as other major cryptocurrencies remain relatively stable. Bitcoin is down 0.8% in a 24-hour period at $95,465.81 and Ethereum is down 0.7% to $2,669.17.
The overall cryptocurrency market is down 1.8% to $3.14 trillion.
Libra memecoin built on the Solana blockchain, initially backed by Argentine President Javier Milei, had piqued considerable interest within the memecoin community. But it wasn’t long before enthusiasm turned to disillusionment when eight associated wallets liquidated a whopping $107 million worth of tokens, resulting in a 95% nosedive in Libra’s value.
While Solana reels from the immediate impact of the Libra debacle, this isn’t an isolated incident.
The crypto market has seen similar turbulence, from memecoins tied to former President Trump’s family to those inspired by Binance’s CZ, all hinting at a troubling trend.
The $TRUMP memecoin hit an all-time high of $75.35 as President Trump was sworn into office. It’s now down a whopping 78% from that level. First Lady Melania Trump’s memecoin has suffered an evern worse fate, down over 90% from January 20.
Milei is now facing heat from Argentina’s opposition parties with calls for impeachment over his Friday retweet that took the $LIBRA price to over $5 at one point.
S&P Merval, the country’s flagship stock index, fell over 5.5% in Monday’s trade following the fiasco.
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