BCGAME - Free 5BTC Daily Bonus!- CZ Initiative for Relief Fund via BNB
- LIBRA faces devaluation after controversial launch
- Compensation for investors is still uncertain
Changpeng ‘CZ’ Zhao, founder and former CEO of Binance, recently launched a fundraising campaign through a new BNB donation wallet aimed at assisting investors who have been harmed by the LIBRA meme token. CZ himself kicked off the fund with a significant personal donation of 150 BNB.
Shortly after this initial contribution, an additional donation of 15 BNB was made by an anonymous user, demonstrating the beginning of a movement of support within the community. Although the amount raised is still not enough to cover the extensive losses of LIBRA traders, the initiative brought greater visibility to the BNB Chain network, highlighting the solidarity among users.
In a related development, the emergence of the Broccoli token coincided with a swap for 150 BNB, adding more funds to the fund. The LIBRA token, which was promoted as being backed by Argentine President Javier Milei, faced rapid devaluation, losing 90% of its value after a quick “rug pull,” severely impacting early buyers.
Sent 150 BNB. Good luck and keep up the good work!https://t.co/y5KyV9NGnA
— CZ 🔶 BNB (@cz_binance) February 18, 2025
LIBRA is currently trading at $0,31 and has over 39 holders, many of whom were unable to sell their coins before liquidity was drained. The majority of the tokens are still held in the wallets of large investors, which could lead to future sales that would further impact its price.
The introduction of CZ’s dog Broccoli on social media has led to the creation of several derivative tokens, which often benefit speculators and insiders who act quickly while the majority suffer losses.
However, it is still unclear how compensation will be provided to LIBRA investors. Research suggests that up to 100 traders may have been impacted, with the 2.200 most active portfolios facing the largest losses. There is currently no concrete plan to reverse or compensate for the losses suffered.
Liquidity on LIBRA’s main trading pair has declined significantly, with the token remaining a high-risk investment, traded only in pools and susceptible to sharp price drops. LIBRA promoter Hayden Mark Davis has yet to provide clear solutions or future plans for the token.
Smaller investors were also significantly affected, with the worst-hit group losing more than $39 million in LIBRA transactions. Total losses for traders are estimated to exceed $286 million.
