Jupiter Token Plunges 12% as LIBRA Controversy Rocks the Solana Ecosystem

The value of Jupiter Token (JUP) has recovered by 4% in the present day after falling as little as $0.6743 up to now 24 hours, with the alternate token struggling a 12% seven-day drop amid fallout from the LIBRA controversy.

A put up from Jupiter’s official X account revealed that members of its workforce had been conscious prematurely that Argentina President Javier Milei would sooner or later be endorsing a meme token.

Nevertheless, the identical put up states that workforce members didn’t know the exact date of launch and that nobody at Jupiter acquired LIBRA tokens or any associated compensation “at any time.”

This has helped to stop JUP from falling additional, though its affiliation with Meteora – the DEX on which LIBRA pumped after which dumped – might make repairing its fame rapidly troublesome.

Jupiter Token Plunges 12% as LIBRA Controversy Rocks the Solana Ecosystem

Whereas Jupiter isn’t instantly concerned within the LIBRA controversy, considered one of its co-founders – the pseudonymous Meow – can also be a co-founder of Meteora, one other decentralized alternate that runs on the Solana blockchain.

And Meteora was the first alternate on which LIBRA traded, rising from a excessive of $5.2 on Friday to its present value of $0.2418.

The rationale for its stratospheric rise was easy: Javier Milei, who posted and pinned a tweet by which he declared that LIBRA would by some means assist enhance Argentina’s financial system.

However as soon as Milei deleted the tweet, LIBRA crashed, creating presumably the most important rug-pull scandal in current reminiscence.

Questions rapidly emerged regarding Meteora’s position in all of this, with co-founder Ben Chow stepping down amid allegations that he was by some means conscious LIBRA wasn’t legit.

Chow has defended himself, affirming on X that he by no means acquired or bought any LIBRA tokens.

Regardless of these protestations, it’s attainable that the episode has tarnished Chow’s and Meteora’s reputations completely, with Jupiter seemingly broken by affiliation.

Its native JUP token has loved a major rebound up to now 24 hours, helped alongside by clarifications from the alternate’s official X account and from its different co-founder, the aforementioned Meow.

These have seemingly helped calm market sentiment, though Jupter Token stays down by 12% up to now week and by 25% up to now month.

Its chart in the present day reveals some restoration in momentum, after it took an enormous hit for a number of days earlier this week.

Its RSI (purple) has bounced from 20 yesterday to round 50 in the present day, whereas its 30-period common (orange) has flattened out and will start rising once more.

Based mostly on this, JUP may return to $0.85 within the subsequent few weeks, assuming that nothing instantly connecting Jupiter with the LIBRA scandal emerges.

Various Alts for Market-Beating Beneficial properties

It might take Jupiter Token a number of weeks (if not longer) to completely restoration, by which case merchants might want to show to different autos for revenue.

One promising avenue in the intervening time includes presale cash, which in sure circumstances can rally vigorously once they listing for the primary time.

And one of many extra fascinating presale cash proper now could be Solaxy (SOLX), which payments itself as Solana’s first true layer-two community.

Since launching its sale in December, SOLX has raised greater than $22.3 million, an encouraging signal of its future progress and recognition.

As an L2, Solaxy will present speedy transactions and low charges when it launches within the subsequent few weeks, with its platform serving to customers keep away from the delays and dropped transactions that also proceed to undermine Solana.

It’s going to additionally present immediate bridging between itself, Solana, and different chains, with its builders aspiring to develop compatibility over time.

It may, due to this fact, acquire appreciable adoption over time, with the platform aiming to turn into an essential a part of the meme token ecosystem.

Buyers can be part of its sale by visiting Solaxy’s official web site, the place SOLX is out there at $0.00164.

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