Here’s what happened in crypto today
Today in crypto, traders brace for a decline in Solana’s native token as sentiment sinks amid growing memecoin scandals; Libra token founder Hayden Davis dismisses memecoin critics as bitter over missed insider deals in the wake of Argentina’s Javier Milei scandal; and at least 12 US states now hold shares in Michael Saylor’s Strategy.Solana shorts spike amid memecoin scandalsTraders are increasingly positioning for a drawdown in Solana’s native SOL (SOL) coin as sentiment plummets amid mounting memecoin scandals on the network, according to data reviewed by Cointelegraph. According to data service Coinalyze, the ratio of long to short SOL positions on cryptocurrency futures exchanges dropped from 4 to 2.5 on Feb. 17, implying a marketwide tilt toward bearishness on SOL.In the fourth quarter of 2024, application revenues on Solana increased by 213%, primarily due to memecoin speculation, according to a report by crypto research firm Messari. Now, insider selling and huge losses for retail are souring sentiment on Solana’s memecoin ecosystem. “The amount of shit thats coming up to the surface now is really badly damaging to SOL ecosystem,” Runner XBT, a pseudonymous trader, said in a Feb. 16 X post. On Feb. 14, Libra (LIBRA), a cryptocurrency seemingly endorsed by Argentine President Javier Milei, erased some $4.4 billion in market capitalization within hours of launching. Milei initially promoted the coin on X but has since deleted his post. He is now facing lawsuits in Argentina for allegedly misleading investors. Since January, traders have lost approximately $2 billion across 800,000 wallets on Official Trump (TRUMP), US President Donald Trump’s official memecoin.Libra founder: Memecoin critics only “bitch” when left out of insider dealsDavis, founder of the controversial Libra (LIBRA) memecoin project, claimed that complaints about memecoin trading stem from investors frustrated over not being part of insider deals. Davis made the remarks during an interview with YouTube investigator Stephen Findeisen, better known as “Coffeezilla,” where he defended the Libra token’s collapse as a failure rather than a scam.“The vast majority of people betting on memecoins, especially at the beginning — and I think there’s a separate conversation — like, that is the game for everyone. And people that get mad are the people that aren’t insiders,” Davis said. He added:“All the bitching on socials is all the people that don’t get into the deals. You’ll never hear them bitch if they’re in the deal.”Pressed on the ethics of insider advantages in memecoin trading, Davis questioned what alternative path exists. “So what do you do then? You don’t launch the project? How do you make money then?” he asked, prompting Coffeezilla to tilt his head in apparent disbelief.The Libra token initially gained traction after receiving social media backing from Argentine President Javier Milei, whose now-deleted post on X helped propel the token’s market capitalization to over $4 billion before it crashed. At least eight insider wallets linked to the Libra team reportedly cashed out significant funds before the collapse.12 US states hold $330 million stake in Saylor’s StrategyTwelve US states have together reported holding $330 million worth of shares in the Bitcoin (BTC) buying firm Strategy (MSTR), formerly MicroStrategy, through their state pension funds or treasury as of the end of 2024.Bitcoin analyst Julian Fahrer wrote to X on Feb. 17 that retirement funds and treasuries in California, Florida, Wisconsin, and North Carolina have the most Strategy exposure, followed by Wisconsin, New Jersey, Texas, Arizona, Colorado, Louisiana, Maryland, Utah and Illinois.California’s teacher retirement fund has the largest holdings in the Michael Saylor-led firm, with 285,785 shares worth around $83 million at the time of its regulatory filing on Feb. 14. Strategy is the world’s largest corporate holder of Bitcoin, with 478,740 BTC currently worth around $46 billion, and its shares are seen as a way of gaining exposure to the cryptocurrency by proxy.