LIBRA Token’s Volatility Wipes Out Traders: Nansen Report

Traders faced losses due to the fluctuating value of the LIBRA Token.

According to a report from the Nansen Research Institute, findings showed that the fluctuating prices of the LIBRA token resulted in losses for many traders during four days from February 14 to February 18, with approximately 86% of traders collectively losing $251 million while a smaller subset managed to earn $180 million in profits.

The sudden rise in the value of LIBRA occurred following Argentina’s President Javier Milei expressing support for it on media on February 14th. The resulting surge pushed the price up to $4.55 before experiencing a decline thereafter. By February 18th, a significant portion of wallets engaged in trading LIBRA had experienced losses, underscoring the unpredictable nature of the token.

A few traders made profits in the term when two investors who purchased LIBRA immediately after Milei’s tweet sold it within 43 minutes and earned a total of $54 million combined amount from the sale process. Several others were surprised when LIBRA’s founder, Hayden Davis, described it as a meme coin and triggered a sell-off in the market.

The impact went further than the token itself. The Solana network that supported LIBRA transactions experienced a 16 percent decrease in its value. Liquidity dropped from $12 billion to $7 billion, albeit this incident highlighted the market’s susceptibility to speculation and excitement more.

Since February 18th, more than a thousand wallets are still holding onto LIBRA, with losses totaling $11 million. This instance serves as a reminder of the dangers associated with following market trends without a thought-out strategy.