Nansen, a blockchain research firm, analyzed trading data and found that most investors in the LIBRA meme coin took a loss.
Of the 15,430 wallets that sold at a profit or loss exceeding $1,000, around 86% took a loss, amounting to a total of $251 million.
Meanwhile, the remaining 2,101 wallets that secured profits collectively gained about $180 million. Nansen’s February 19 report pointed out that while a small number of traders walked away with big earnings, the majority faced losses.
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The report noted, “Insiders’ took profits, retail got burned, and key backers distanced themselves”.
Breaking down the losses, 1,478 wallets recorded losses between $1,000 and $10,000, totaling $4.8 million. Around 2,800 wallets saw losses ranging from $10,000 to $100,000, adding up to $82.4 million.
Another 392 wallets lost between $100,000 and $1 million, bringing combined losses to approximately $96.5 million. The highest losses were seen in 23 wallets, each losing more than $1 million, with total losses reaching $40.9 million.
Nansen also highlighted that the 15 worst-hit wallets collectively lost $33.7 million. One of these still holds 57% of its original balance despite losses.
A particular case was Barstool Sports founder Dave Portnoy, whose wallet suffered the steepest realized loss of $6.3 million. Though considered an insider, Portnoy later returned 6 million LIBRA tokens that had been given to him for promotional purposes and was refunded $5 million.
The popularity of memecoins appears to be fading following the $4 billion LIBRA controversy. How did the crypto community respond? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
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