Key Insights:
- The LIBRA token fallout has impacted Solana’s memecoin ecosystem, according to Galaxy’s report.
- The memecoin narrative began to decline after the introduction of the TRUMP token in January.
- SOL has seen a drop in value against both the U.S. dollar and ether following LIBRA’s launch.
The latest incident regarding the LIBRA token has been described as a “rug pull,” drawing criticism for its ramifications on the Solana memecoin arena, as indicated in a report from Galaxy Research.
Galaxy also stated that the negative perception surrounding this token intensified following the introduction of the TRUMP token in January. This development could spell further trouble for the entire memecoin ecosystem.
In the report, Galaxy pointed out that Argentina’s President Javier Milei is facing impeachment threats connected to the LIBRA token, which was intended to aid small businesses but saw a staggering decline of around 90% in its market cap after peaking at $4.5 billion.
Alex Thorn, Galaxy’s head of firm-wide research, termed this situation as the latest grim chapter in Solana’s memecoin tale, referencing the downturn since January’s peak.
Hayden Davis, CEO of Kelsier, who launched the LIBRA memecoin, stated he was also behind the MELANIA token. He claimed both coins were managed aggressively as soon as their contract addresses went active. Davis is adamant that the LIBRA incident is not simply a rug pull but rather an unfortunate outcome with funds still under his control, totaling $100 million.
For more details, read the full article on CoinDesk.
