President Javier Milei Hurts Investors While Also Causing Solana to Plunge Severely
Key Points:
- Solana has dropped seriously, largely due to controversy surrounding the LIBRA meme coin, which Argentine President Javier Milei initially endorsed.
- Other meme coins on Solana, like LIBRA, MELANIA, and TRUMP tokens, have also suffered major losses.
Solana’s cryptocurrency, SOL, has experienced a significant decline amid controversy surrounding a meme coin linked to Argentine President Javier Milei.
Read more: Argentina President Javier Milei Continues to Retweet About LIBRA While Controversy Remains Tensions
Solana Faces Sharp Decline Amid President Javier Milei’s Scandal
According to Bloomberg, the sixth-largest digital asset by market value dropped nearly 25% since February 14, reaching its lowest level since early November.
The downturn follows the fallout from the LIBRA token, a Solana-based meme coin that saw its value plummet nearly 90% after being initially endorsed and later disavowed by President Javier Milei.
The Argentine leader now faces fraud allegations, while the LIBRA project has been mired in accusations of insider trading. Blockchain analysts have also drawn connections between LIBRA’s issuers and those behind MELANIA, a meme token associated with U.S. First Lady Melania Trump, which has lost nearly 95% of its value since last month.
The broader meme coin market on Solana has been under scrutiny as investors navigate extreme volatility. Another high-profile token, TRUMP, linked to former U.S. President Donald Trump, has shed nearly 80% of its value since peaking on January 19.
The rapid rise and fall of these assets show the speculative nature of the market, with over 60,000 meme coins launched on Solana’s Pump.fun platform, according to blockchain tracker Dune.
Upcoming 11.2 Million SOL Unlock Raises Concerns Over Selling Pressure
While meme coins have contributed to the bearish sentiment, other factors are also weighing on SOL’s price. On March 1, a scheduled unlock of 11.2 million SOL tokens from FTX’s bankruptcy estate is set to take place.
These tokens, originally acquired at deflated prices during liquidation auctions, may soon enter the market, adding to potential selling pressure. The SOL token is now down nearly 15% in the last 7 days and 31.4% since last month.
Despite recent setbacks, Solana continues to attract developers due to its low fees and fast transactions. The network recently marked a full year without an outage. Times are tough for SOL right now, but the Solana blockchain is still appealing for its low costs and superior transaction speeds.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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