On-chain analysis from Nansen revealed that 86% of traders who invested in the controversial LIBRA meme coin suffered total losses of $251 million.

While many incurred losses, however, a small group of winners walked away with $180 million in profits.

The report sheds light on the controversial launch and rapid collapse of the LIBRA token. The controversial meme coin briefly surged to a $4.5 billion valuation following an endorsement by Argentina’s President Javier Milei on February 14, 2025.

The Solana-based meme coin was initially marketed as a tool to fund small businesses and ventures in Argentina. As the controversy unfolded, however, Milei deleted his endorsement tweet while Hayden Davis, one of the key figures behind the coin, dismissed it as a simple meme project.

This sharp contrast between its initial framing and later narrative fueled accusations that the token was merely an insider cash grab.

On-chain data from Nansen shows that insiders and skilled traders were able to secure significant profits while the majority of investors faced heavy losses. One of the most profitable traders, HyzGo2, turned a $5.1 million profit by buying early and exiting within 43 minutes.

Another wallet, 8bZsrR, realized a staggering $25 million in gains. However, Nansen explained that further analysis indicates the funds were distributed across seven wallets, and some exited at a loss.

A major revelation in the report shows that many of the top profiteers were likely trading bots and insiders rather than individual retail investors. Only 37 of the earliest 57 wallets that entered LIBRA made over $1,000 in profit, suggesting that sniping bots played a role in the initial price surge.

The Nansen report highlights Barstool Sports founder Dave Portnoy among the high-profile victims of the LIBRA collapse. He reportedly lost $6.3 million on the token. However, on-chain data shows that he was later refunded $5 million, raising questions about selective reimbursements and insider dealings.

According to Nansen, off-chain confirmations from both Portnoy and Davis confirmed the reimbursement, further fueling the controversy.

Adding another layer to the scandal, blockchain intelligence firm Arkham announced it had identified over 1,000 addresses linked to Kelsier Ventures, operated by Hayden Davis. The firm revealed that Kelsier still holds almost $300 million in funds, including substantial amounts of LIBRA.

“We have identified over 1000 addresses belonging to Kelsier Ventures, a.k.a. Hayden Davis. Kelsier addresses that hold LIBRA-associated funds are tagged in our ‘Libra’ entity. Kelsier addresses separate from the LIBRA project are tagged as ‘Kelsier Ventures (Hayden Davis)’,” Arkham reported.

Further, Arkham indicated that Kelsier’s Libra entity contains roughly $100 million in extracted USDC and SOL from liquidity pools. Meanwhile, the Kelsier Ventures entity controls 70% of the supply of another coin, BRYAN.

Meanwhile, the collapse of LIBRA had broader implications beyond the token itself. The meme coin’s unraveling coincided with a 16% decline in Solana’s price and a liquidity outflow from Solana-based projects into Ethereum. DeFiLlama reports a drop from $12.1 billion to $8.42 billion in liquidity as of this writing.

On-chain data shows a pattern of insiders profiting at the expense of retail investors, and the LIBRA debacle reinforces skepticism about the Solana meme coin market. As BeInCrypto reported, Uniswap CEO Hayden Adams said controversial token launches are intentional.

The post LIBRA Insiders Rake in Profits While Retail Traders Lose $251 Million: Nansen appeared first on BeInCrypto.

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