A recent on-chain analysis by Nansen revealed that 86% of traders who invested in the controversial LIBRA meme coin suffered total losses of $251 million. Meanwhile, a small group of insiders and snipers walked away with $180 million in profits.
Insiders Profit While Retail Investors Lose
The LIBRA token’s rapid rise and fall highlight concerns about insider trading in the crypto space. The Solana-based meme coin briefly surged to a $4.5 billion market cap after Argentina’s President Javier Milei endorsed it on February 14, 2025.
Originally marketed as a funding tool for small businesses, LIBRA quickly became controversial. As the situation escalated, Milei deleted his endorsement, and Hayden Davis, a key figure behind the project, dismissed it as a simple meme project. This shift fueled speculation that LIBRA was an insider cash grab rather than a legitimate project.
How Insiders Cashed In on LIBRA
On-chain data shows that early buyers and trading bots secured massive profits, while retail investors suffered losses.
- Trader “HyzGo2” made $5.1 million by buying early and exiting within 43 minutes.
- Wallet “8bZsrR” gained $25 million, though further analysis suggests funds were split across multiple wallets, some of which exited at a loss.
- Sniping bots played a key role, with only 37 out of 57 early wallets making over $1,000 in profit.
Among the high-profile victims, Barstool Sports founder Dave Portnoy reportedly lost $6.3 million. However, blockchain data shows he was later reimbursed $5 million, raising concerns about selective refunds and insider favoritism.
Arkham Uncovers Kelsier Ventures’ LIBRA Holdings
Adding to the controversy, blockchain intelligence firm Arkham identified over 1,000 addresses linked to Kelsier Ventures, a company run by Hayden Davis. Key findings include:
- Kelsier Ventures still holds nearly $300 million, including large amounts of LIBRA.
- Around $100 million in USDC and SOL was extracted from liquidity pools.
- Kelsier controls 70% of BRYAN’s total supply, another token with insider involvement.
LIBRA’s Collapse Hits the Solana Market
The fallout from LIBRA affected more than just investors. The meme coin’s collapse coincided with:
- A 16% drop in Solana’s price.
- Liquidity outflows from Solana-based projects to Ethereum.
- A total liquidity drop from $12.1 billion to $8.42 billion, according to DeFiLlama.
This incident reinforces growing skepticism about Solana’s meme coin market. Uniswap CEO Hayden Adams recently commented that such token launches are often deliberately exploitative.
Final Thoughts
The LIBRA meme coin crash serves as a harsh reminder of the risks in crypto investing. While insiders and trading bots secured massive gains, retail investors lost millions. As scrutiny on Solana’s meme coin ecosystem grows, the question remains: Will regulators step in, or will the cycle repeat?
