18-2-2025 – In a devastating blow to the Solana memecoin ecosystem, the controversial LIBRA token has experienced a catastrophic 90% price plummet, prompting serious concerns from industry analysts and leaving investors reeling, according to a new report from Galaxy Research.
The dramatic collapse, which saw the token’s market capitalisation tumble from a peak of $4.5 billion, marks the latest setback for Solana’s already troubled memecoin landscape. The incident has drawn particular scrutiny following its connection to Argentina’s President Javier Milei, who now faces potential impeachment proceedings after promoting the token, which was marketed as a solution for small businesses.
Galaxy Research’s head of firmwide research, Alex Thorn, described the LIBRA debacle as a “sordid episode” in his Monday report. The analysis suggests this incident could further erode confidence in Solana’s native cryptocurrency SOL, which has already witnessed significant decline against both the US dollar and ethereum.
“The memecoin ecosystem’s downturn began with January’s TRUMP token launch, which effectively drained market liquidity. The LIBRA situation threatens to compound these existing challenges,” Thorn explained in the report.
At press time, Solana’s value had declined by 8.6% over 24 hours, trading at $168.73, highlighting the immediate impact of the crisis.
Adding another layer to the controversy, Kelsier CEO Hayden Davis, who has admitted to launching both the LIBRA and MELANIA tokens, defended his actions in a recent interview with crypto fraud investigator Coffeezilla. Davis maintained that the incident was “not a rug pull” but rather “a plan gone miserably wrong”, acknowledging his custody of approximately $100 million in related funds.
