Jupiter Token Declines 12% Amid LIBRA Dispute Impacting the Solana Ecosystem

The price of Jupiter Token (JUP) has increased by 4% today after experiencing a decline to as low as $0.6743 within the last 24 hours, with the alternative token facing a 12% drop over the past week due to the repercussions of the LIBRA controversy.

A post from Jupiter’s official X account indicated that team members were aware in advance that Argentina’s President Javier Milei would eventually endorse a meme token.

However, the same post clarifies that team members were unaware of the specific launch date and that no one at Jupiter received LIBRA tokens or any related compensation “at any time.”

This has contributed to preventing JUP from declining further, although its connection with Meteora – the decentralized exchange where LIBRA surged and subsequently plummeted – may complicate efforts to restore its reputation swiftly.

Jupiter Token Drops 12% as LIBRA Controversy Affects the Solana Ecosystem

While Jupiter is not directly involved in the LIBRA controversy, one of its co-founders – the pseudonymous Meow – is also a co-founder of Meteora, another decentralized exchange operating on the Solana blockchain.

Meteora was the first exchange where LIBRA was traded, rising from a peak of $5.2 on Friday to its current price of $0.2418.

The reason for its dramatic increase was straightforward: Javier Milei posted and pinned a tweet claiming that LIBRA would somehow aid in improving Argentina’s economy.

Milei did not even present $Libra as a shitcoin or memecoin (people who invest in such assets generally know what they are getting into). No, he showcased it as a project for the growth and entrepreneurship of Argentina. He kept the tweet pinned on his profile for hours. A disgraceful scam. pic.twitter.com/L2yYNI2Ket

— Edu⁷ (@AlephEdu) February 16, 2025

However, once Milei deleted the tweet, LIBRA collapsed, potentially creating one of the largest rug-pull scandals in recent memory.

Questions quickly arose regarding Meteora’s involvement, with co-founder Ben Chow resigning amid allegations that he was somehow aware LIBRA was not legitimate.

Chow has defended himself, stating on X that he never acquired or sold any LIBRA tokens.

Hours later, Solana Floor shared a video
Exposing the scam involving Kelsier, Meteora, and M3M3.
The video shows Kelsier damaging the ecosystem and dragging Meteora down.
It also reveals that Ben knew but did not intervene because Kelsier pressured him.
(7/9) https://t.co/KukDbNaN51

— StarPlatinum (@StarPlatinumSOL) February 18, 2025

Despite these denials, it is possible that the incident has irreparably harmed Chow’s and Meteora’s reputations, with Jupiter seemingly affected by association.

Its native JUP token has experienced a notable rebound in the past 24 hours, aided by clarifications from the exchange’s official X account and from its other co-founder, the aforementioned Meow.

These clarifications have likely helped stabilize market sentiment, although Jupiter Token remains down by 12% over the past week and by 25% over the past month.

Its chart today indicates some recovery in momentum, following a significant decline earlier this week.

Source: TradingView

Its RSI (red) has risen from 20 yesterday to around 50 today, while its 30-period average (orange) has leveled off and may begin to increase again.

Based on this, JUP could potentially return to $0.85 in the coming weeks, provided that no new information directly linking Jupiter to the LIBRA scandal surfaces.

Alternative Alts for Market-Beating Gains

It may take Jupiter Token several weeks (if not longer) to fully recover, during which traders might need to explore other options for profit.

One promising avenue currently involves presale tokens, which in certain instances can surge significantly upon their initial listing.

Among the more intriguing presale tokens at the moment is Solaxy (SOLX), which positions itself as Solana’s first true layer-two network.

Since launching its sale in December, SOLX has raised over $22.3 million, a positive indicator of its future growth and popularity.

As an L2, Solaxy will offer fast transactions and low fees when it launches in the coming weeks, with its platform designed to help users avoid the delays and dropped transactions that continue to plague Solana.

It will also facilitate instant bridging between itself, Solana, and other chains, with its developers aiming to enhance compatibility over time.

Thus, it could achieve substantial adoption over time, with the platform aspiring to become a vital part of the meme token ecosystem.

Investors can participate in its sale by visiting Solaxy’s official website, where SOLX is available at $0.00164.

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