TechFlow news, February 18 — According to CoinDesk, a recent report from Galaxy Research indicates the LIBRA token incident—now suspected of being a scam—has become the latest major blow to Solana's meme coin ecosystem. The token, which claimed to support small businesses and had once gained endorsement from Argentine President Milei, reached a market capitalization of $4.5 billion before plummeting by 90%, leading to impeachment threats against Milei.
Alex Thorn, Head of Research at Galaxy, stated that Solana's ecosystem is undergoing a severe crisis of confidence. Since the launch of the TRUMP token in January—which briefly achieved a fully diluted valuation of $75 billion—sentiment in the meme coin market has been deteriorating, and the LIBRA incident has further exacerbated the situation. As SOL's price gains have largely been driven by demand for SOL-denominated assets like meme coins, this event could further undermine investor confidence.
Hayden Davis, CEO of Kelsier and founder of the LIBRA project, admitted in an interview with Coffeezilla that his team simultaneously launched both the LIBRA and MELANIA tokens and executed a front-run immediately after publishing the contract address. Davis denied allegations of running away with funds, calling it a "planning failure," and noted that he still holds $100 million in his accounts.
