Argentina’s fiasco of the memecoin memecoin destroyed $ 251 million in investors wealth, shows research

The Memecoin balance scandal that rocked Argentina over the weekend has destroyed millions of dollars in wealth of investors, according to Nansen research.

The chain data followed by Nansen show that 86% of traders lost a total of $ 251 million, while the winners obtained only $ 180 million in profits. In other words, it was a “negative net generating wealth” event that potentially sucked the liquidity of the market.

The episode is a brutal reminder that tokens associated with political figures can be just as risky as random mecoins and celebrity cryptocurrencies to do or break the fortunes in a few minutes.

The balance made its debut on Meteora, a decentralized exchange based in Solana last Friday and quickly reached a market capitalization of more than $ 4.5 billion after the president of Argentina, Javier Milei, financing of small businesses and Argentine companies. “”

Over 40,000 cryptographic addresses piled up in the token, fueling a price wave. The upward excitement, however, was short -lived. The balloon appeared while the initiates discharged a massive number of tokens, by tanning the market capitalization of 90%.

Read more: will the Crypto-Fiasco of the Argentine President Milei be a time for the same Crate?

Milei finally deleted his X Post, saying that he was “not aware of the details of the project” and, now informed, chose not to continue to promote it. At that time, however, the damage was caused.

The opposition described the whole case an international embarrassment and threatened to remove Milei.

“70% of portfolios exchanging $ balance from February 16 to 18 ended with losses made, because many have probably tried to take advantage of Javier Milei’s additional retweet,” Nansen said in a shared report with Coindesk.

The number of unique jets dropped to 35,770 on February 18 of more than 50,000 on February 14. Meanwhile, two portfolios that bought the token at 10:01 pm UTC and sold at 22:44 UTC on February 14, made just up to 5.4 million dollars in total profits, the report said.

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