The dramatic collapse of the Solana-based Libra memecoin has sparked controversy, legal battles, and renewed scrutiny of the crypto market.
Once valued at $4.5 billion, the token plummeted 95% over the weekend, leaving retail investors with heavy losses and raising questions about insider activity in the memecoin sector.
CryptoSlate has curated some of the major talking points and community reactions below:
Political turmoil in Argentina
Argentina’s president, Javier Milei, has been spotlighted following the token’s crash.
While Milei has argued that he only shared information about LIBRA, his perceived endorsement fueled investor interest before the project unraveled.
However, he explained that he was introduced to LIBRA as a tool to help entrepreneurs access funding in Argentina’s informal economy. Still, critics accuse him of enabling reckless speculation, which has led to legal challenges and even impeachment threats.
Milei has since acknowledged the need to reassess his approach to public engagement as the controversy unfolds.
Plans for a Nigeria memecoin?
Beyond Argentina, reports suggest that the LIBRA team explored launching a separate token in partnership with Nigeria’s government administration members.
Kelsier Ventures, the company at the center of the controversy, allegedly discussed releasing a Solana-based token linked to Nigerian political circles.
Although no direct evidence connects Nigerian President Bola Tinubu to the initiative, sources claim that some of his associates were involved.
One insider described the project as “far along” before it stalled. These allegations could further damage trust in politically affiliated crypto ventures if confirmed.
Meteora co-founder resigns
In a related development, Ben Chow, co-founder of the Solana-based Meteora platform, stepped down amid insider trading allegations tied to high-profile memecoin launches.
Meteora previously supported the launch of controversial Donald Trump-related tokens, raising ethical concerns about its handling of liquidity and early access.
On Feb. 18, Meow, the co-founder of Meteora and Jupiter, confirmed Chow’s resignation, citing leadership missteps. However, he insisted that neither company engaged in financial misconduct.
Meow said:
“While I am 100% confident about Ben’s character, as a project lead he has also shown a lack of judgement and care about some of the core aspects of the project (given its current size and reputation) over the past couple of months.”
Meanwhile, Chow stated that while his team knew about the LIBRA token weeks before its launch, their involvement was limited to IT support, including verifying its legitimacy and advising on liquidity.
What next for memecoins?
LIBRA’s collapse has intensified the debate over the sustainability of memecoins.
Prominent crypto trader DFarmer suggested the crash was inevitable, arguing that constant cycles of speculation, rapid launches, and market manipulation were bound to lead to a reckoning.
According to him:
“This game doesn’t end until every rotation rug is faster, more damaging and more efficient. Every buyer bled dry. No survivors, no relief rallies. Just pure, surgical devastation.”
Conversely, JAN3 CEO Samson Mow believes the trend will persist as speculation remains deeply embedded in crypto culture.
Base developer Jesse Pollak echoed similar concerns, stating that the same projects will reappear with different branding unless long-term builders push for meaningful change.
He wrote:
“A few days from now, the same people will be back selling us the same shit wrapped in a slightly different wrapper (eg new celeb, new air of legitimacy, etc). only way for this industry to get off the treadmill is for long term thinkers to build a better future.”
As the fallout continues, the industry faces increasing scrutiny over regulatory gaps, ethical concerns, and the risks associated with memecoin speculation.
Mentioned in this article
This news is republished from another source. You can check the original article here
