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- Insiders dumped $LIBRA for $43.8M profit, crashing its price from $0.05 to $0.02 in hours.
- The market panic led to a surge in $LIBRA trading volume, widening bid-ask spreads on major exchanges.
- AI tokens like $FET and $AGIX saw reduced trading as market sentiment shifted from greed to caution.
Today, a major event hit the cryptocurrency market. Lookonchain reported that 11 insider wallets made $43.8 million. These wallets were created just hours before $LIBRA launched on February 14, 2025. They bought tokens at $0.01 and sold them at $0.05 within 12 hours. This planned dump caused a sharp price drop and panic among investors.
11 insider wallets have made a profit of $43.8M by dumping $LIBRA!
— Lookonchain (@lookonchain) February 15, 2025
These 11 wallets were created a few hours before $LIBRA was launched, and funds to buy $LIBRA were prepared in advance.
Insider wallets:
CMLkomKRxisYj8NbDX9F67rjTzB4aXy5mmCLU15cDbv5… pic.twitter.com/fPmkfS3iQ4
Immediate Market Impact
The token’s price showed a significant downward trend as insiders began selling their shares. The value of the token plunged from $0.05 at 9:00 AM UTC to $0.02 at 11:00 AM UTC. The fast depreciation triggered wide-scale selling professionals among individual investors. The market activity during this period reached 1.2 billion tokens traded in 24 hours.
The $LIBRA/USDT trading pair on Binance witnessed its bid-ask spread expand from 0.5% to 2.5%. Within three hours of the dump, $SOLAR suffered a 10% decline while Kraken’s $LIBRA/BTC pair witnessed a spread increase from 1.0% to 3.0%.
Technical Indicators Confirm Bearish Trends
The signal at the technical level was negative after the sell-off. The Relative Strength Index (RSI) increased from 70 to 90 within the first hour only. This indicated extreme overbought conditions before the price crashed. The MACD crossed the signal line bearishly at 10:00 AM UTC indicating bearish sentiments for this particular time.
On-chain indicators showed a decrease in the level of investment demand. The daily active $LIBRA addresses were reduced from 5,000 to 2,000. The average amount per transaction which was initially $10000 was brought down to $2000. This was followed by the NVT rising from 100 to 500 for the overvaluation of the currency.
Market Sentiment and AI Tokens
The insider dump affected the broader market. For the Fear and Greed Index, it went down from 75 (Greed) to 50 (Neutral) after the announcement. These market events have reduced trading volumes by 5% for $FET and 3% for $AGIX.
Although AI tokens were not directly involved, market uncertainty influenced their performance. Market participants displayed increased caution which led them to cut back their positions in risky investments. The reduction in speculative investments could open temporary trading possibilities for AI-focused digital currencies.