Nansen On-Chain Data Reveals Insiders and Bots Profited $180M From the Controversial $4.5B LIBRA Meme Coin Collapse, While 86% of Retail Traders Lost $251M

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.

A new analysis from Nansen reveals that 86% of traders who invested in the controversial meme coin, LIBRA, incurred total losses amounting to a hefty $251 million.

However, while the majority of traders experienced significant losses, a select few managed to walk away with substantial profits, totaling a staggering $180 million.

This report sheds light on the一波坎坷的旅程 of the meme coin, which initially soared to a valuation of $4.5 billion after being endorsed by Javier Milei. The Solana-based meme coin was positioned as a tool to fund small businesses and ventures in Argentina.

However, Milei later deleted his endorsement tweet, and Hayden Davis, a key figure behind the coin, downplayed its significance, describing it as a simple meme project. This sharp contrast in framing fueled accusations that the token was essentially an insider cash grab.

According to on-chain data from Nansen, 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, managed to turn a profit of $5.1 million by buying early and exiting within 43 minutes. Another wallet, 8bZsrR, realized a massive gain of $25 million.

However, further analysis by Nansen revealed that the funds were actually distributed across seven wallets, and some of them exited at a loss.

Interestingly, the report suggests 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, indicating that sniping bots may have played a role in the initial price surge.

Among the high-profile victims of the LIBRA collapse is Barstool Sports founder Dave Portnoy, who reportedly lost $6.3 million on the token. However, on-chain data shows that he was later partially refunded $5 million, sparking rumors of selective reimbursements and insider dealings.

According to Nansen, both Portnoy and Davis confirmed the reimbursement off-chain, further adding fuel to the controversy.

In another development, blockchain intelligence firm Arkham has 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)'”

Moreover, 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.

notably, 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 continues to show 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.