The LIBRA Memecoin Scandal: From $4.5B Hype to Fraud Charges

Stablecoins, ETFs, and a memecoin hangover — let’s unpack the madness!

Feb 17, 2025

Hey Alphafellaz,

We’re back from NFT Paris, and let’s just say — what a ride! From killer panels to side events that went way too late, it was a blast connecting with you IRL. If you missed it, don’t worry — we’ll be at plenty more events this year.

Speaking of which…

We’ve put together a list of 300+ upcoming side events at ETH DENVER on Sheeets.xyz, so you won’t have to miss an alpha-packed conference, hackathon, or degen meetup next week.

Now, let’s dive into this week’s crypto chaos. Here are my top 3 picks:

Could Jack Dorsey be Satoshi Nakamoto?
OpenSea Teases $SEA Token Airdrop
Doodles Set to Launch Official Token $DOOD on Solana

Next to this, there was a The LIBRA Memecoin Scandal, Stablecoins under the microscope, ETF action heating up, and the memecoin frenzy cooling down. Buckle up! 🚀

— 🩸💀 AMERICAN RADASS

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📰 The LIBRA Memecoin Scandal

Argentine President Javier Milei, known for his libertarian views and pro-crypto stance, recently became embroiled in a major cryptocurrency scandal. With the backing of Kelsier Ventures, Milei helped launch a memecoin called LIBRA, claiming it would support Argentina’s economic development.

The token quickly surged to a $4.5 billion fully diluted valuation, attracting massive trading volume. However, it was later revealed that 95% of the supply was allocated to insiders and the project team. As the token price soared, liquidity was strategically removed, allowing Kelsier Ventures to cash out over $110 million before the inevitable crash. When LIBRA’s price collapsed to $300 million, Milei distanced himself from the project, but this wasn’t enough to avoid consequences — he has since been charged with fraud in Argentina.

The scandal has sent shockwaves through the Solana ecosystem, with SOL dropping 10% and many related DeFi and meme tokens suffering losses of 20–40%. Some believe this marks the end of Solana’s high-risk “casino” culture — at least for now.

Meanwhile, Ethereum and Binance Smart Chain have begun to outperform, as investors look for safer alternatives. The LIBRA debacle highlights the ongoing risks in the crypto space, where high-profile endorsements and rapid price movements often mask deeper manipulations behind the scenes.

📰 Stablecoins and ETFs Steal the Spotlight

Crypto regulations continue to ramp up, now focusing on stablecoins and ETFs. Fed Chair Jerome Powell says stablecoins need proper rules, while Rep. Maxine Waters is pushing a bipartisan bill for oversight that could be passed in as little as six months.

Tether’s CEO also confirmed they’re in talks with U.S. lawmakers to shape stablecoin policies.

On the ETF side, the SEC is reviewing Grayscale’s XRP and Dogecoin applications, and South Korea is looking to launch a crypto ETF of its own. If approved, these moves could open the door to more institutional money in altcoins.

📰 Memecoin Frenzy Cools, Focus Shifts to Top Crypto

Memecoins seem to be losing their shine as traders switch back to Bitcoin, Ethereum, and other blue chip coins.

Analytics firm Santiment notes a drop in retail speculation on tokens with no real use cases.

Even Elon Musk’s recent X rebrand which briefly sparked a new meme frenzy couldn’t reignite the hype for long.

But classic memes stand strong, with some analysts now seeing a Dogecoin ETF as more likely than Solana or XRP, given DOGE’s brand recognition.

Pump.fun is also trying to keep the hype alive by launching a mobile app.

📰 Ethereum, Solana, & BNB Roll Out Major Upgrades

Ethereum’s Pectra network upgrade is in the works, aiming to boost transaction speeds, and Vitalik Buterin wants a 10x gas limit hike for faster, cheaper operations.

Over on Solana, the chain is positioning itself for real world assets, and BNB Chain plans gasless transactions and AI-powered features by 2025.

Plus, TON is integrating LayerZero to enable cross-chain transfers across 100+ blockchains, pushing crypto closer to true interoperability.

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🤓 DISCLAIMER: NFA & DYOR

This newsletter is a curated overview of the most exciting things I’ve read the past week, the projects I’ve researched, and the Coins or NFTs I’ll be trying to buy.

This means I’m - per definition - biased, so don’t consider this as financial advice, and keep doing your own research if you see something you like.

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