11 Insider Crypto Investors Generate $43.8 Million in Profits by Selling Off $LIBRA Immediately After Launch

A recent blockchain analysis has revealed that 11 insider crypto investors generated $43.8 million in profits by selling off LIBRA tokens immediately after its launch. 

On-chain monitoring platform LookonChain reported that these investors created wallets just hours before the launch, pre-funded them, and strategically acquired large amounts of LIBRA. 

The coordinated activity has raised serious concerns about market manipulation, as unsuspecting retail investors were left to suffer significant losses. 

The LIBRA token launch, which initially saw massive hype, has now become a cautionary tale about the dangers of insider trading and unchecked speculation in the cryptocurrency market.

LIBRA Token Plunges 85% After Liquidity Pool Removal

LIBRA’s rapid rise came to a shocking end when its development team removed $87 million in USDC and SOL from liquidity pools, causing the token’s value to plummet by 85% within hours. 

According to blockchain analysis firm Bubblemaps, the token, which had initially reached a fully diluted valuation of $4.5 billion, saw its top 100 holders suffer average losses exceeding 56% from their entry price of $1.6 per token. 

The sudden collapse has led to widespread accusations of rug pull-like behavior, where token developers or insiders profit at the expense of everyday investors. 

Many within the crypto community are now demanding stricter regulations and transparency measures to prevent similar liquidity manipulations in the future.

Also Read: LLM Token Investor Turns 23.76 SOL Worth $4.7K Into $1.36M In 19 hours, Sees 289x Floating Profits

Public Outrage Over Insider Trading Sparks Calls for Regulation

The LIBRA token fiasco has triggered significant backlash from the cryptocurrency community, with many arguing that the market continues to be plagued by pump-and-dump schemes and insider trading. 

While a small group of insiders cashed out millions, thousands of regular investors suffered devastating losses. 

Social media platforms have been flooded with calls for tighter regulations on pre-sale allocations, liquidity management, and anti-whale dumping policies. 

Many traders believe that the lack of oversight in token launches allows bad actors to exploit hype-driven markets, leaving retail investors vulnerable to massive financial losses. 

The LIBRA incident serves as yet another example of how easily crypto markets can be manipulated, reinforcing the need for investor education and due diligence.

Argentine President Javier Milei Distances Himself from LIBRA After Deleted Tweet

The controversy surrounding LIBRA escalated further when Argentine President Javier Milei deleted a tweet promoting the token after its price crash. 

In a public statement, Milei clarified: “I posted a tweet supporting a so-called private enterprise, but I have no relationship with it. I don’t know the details of the project, and after learning about it, I decided to delete my tweet.” 

His sudden withdrawal from endorsing LIBRA has fueled speculation that his tweet may have contributed to the initial hype, potentially influencing traders to buy in before the collapse. 

The LIBRA debacle, along with other recent crypto scams, highlights the ongoing risks in the digital asset space, where celebrity endorsements and insider manipulation continue to have a significant impact on market trends. 

The event adds to a growing list of crypto-related fraud cases that have prompted international law enforcement agencies to take stronger action against illicit activities in the sector.

Memecoin Market Sees Wild Profits and Heavy Losses

While LIBRA’s collapse has dominated headlines, the broader crypto market has seen notable memecoin trading activities, with traders securing both massive profits and significant losses. 

A crypto whale currently holds $14.84 million in AI16Z and ARC tokens, with $4.38 million in unrealized gains after AI16Z surged 52.75% in a week and ARC skyrocketed 93.31%. 

Meanwhile, another trader turned $5K into $12 million in just three hours by trading the $CAR memecoin, achieving a 2,450x return—only for $CAR’s price to drop 50% within 24 hours, exposing the volatility of memecoin trading. 

In another case, a well-known trader, Traderpow, initially made $22.7 million from $TRUMP token sales but suffered an $8.48 million loss after reinvesting $16.7 million at higher prices. 

These examples reflect the high-risk, high-reward nature of speculative crypto trading, where fortunes can be made or lost in a matter of hours.

Also Read: Crypto Trader Who Made $2.9M Profit from $TRUMP Suffers $1.8 Million Loss on $CAR Trade