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The price of Jupiter Token (JUP) has recovered by 4% today after falling as low as $0.6743 in the past 24 hours, with the exchange token suffering a 12% seven-day drop amid fallout from the LIBRA controversy.
A post from Jupiter’s official X account revealed that members of its team had been aware in advance that Argentina President Javier Milei would at some point be endorsing a meme token.
However, the same post states that team members didn’t know the precise date of launch and that no one at Jupiter received LIBRA tokens or any related compensation “at any time.”
This has helped to prevent JUP from falling further, although its association with Meteora – the DEX on which LIBRA pumped and then dumped – may make repairing its reputation quickly difficult.
Jupiter Token Plunges 12% as LIBRA Controversy Rocks the Solana Ecosystem
While Jupiter isn’t directly involved in the LIBRA controversy, one of its co-founders – the pseudonymous Meow – is also a co-founder of Meteora, another decentralized exchange that runs on the Solana blockchain.
And Meteora was the primary exchange on which LIBRA traded, rising from a high of $5.2 on Friday to its current price of $0.2418.
The reason for its stratospheric rise was simple: Javier Milei, who posted and pinned a tweet in which he declared that LIBRA would somehow help boost Argentina’s economy.
But once Milei deleted the tweet, LIBRA crashed, creating possibly the biggest rug-pull scandal in recent memory.
Questions quickly emerged concerning Meteora’s role in all of this, with co-founder Ben Chow stepping down amid allegations that he was somehow aware LIBRA wasn’t legit.
Chow has defended himself, affirming on X that he never received or purchased any LIBRA tokens.
Despite these protestations, it’s possible that the episode has tarnished Chow’s and Meteora’s reputations permanently, with Jupiter seemingly damaged by association.
Its native JUP token has enjoyed a significant rebound in the past 24 hours, helped along by clarifications from the exchange’s official X account and from its other co-founder, the aforementioned Meow.
These have seemingly helped calm market sentiment, although Jupter Token remains down by 12% in the past week and by 25% in the past month.
Its chart today shows some recovery in momentum, after it took a massive hit for several days earlier this week.
Its RSI (purple) has bounced from 20 yesterday to around 50 today, while its 30-period average (orange) has flattened out and could begin rising again.
Based on this, JUP could return to $0.85 in the next few weeks, assuming that nothing directly connecting Jupiter with the LIBRA scandal emerges.
Alternative Alts for Market-Beating Gains
It may take Jupiter Token several weeks (if not longer) to fully recovery, in which case traders may prefer to turn to alternative vehicles for profit.
One promising avenue at the moment involves presale coins, which in certain cases can rally vigorously when they list for the first time.
And one of the more interesting presale coins right now is Solaxy (SOLX), which bills itself as Solana’s first true layer-two network.
Since launching its sale in December, SOLX has raised more than $22.3 million, an encouraging sign of its future growth and popularity.
As an L2, Solaxy will provide speedy transactions and low fees when it launches in the next few weeks, with its platform helping users avoid the delays and dropped transactions that still continue to undermine Solana.
It will also provide instant bridging between itself, Solana, and other chains, with its developers intending to expand compatibility over time.
It could, therefore, gain considerable adoption over time, with the platform aiming to become an important part of the meme token ecosystem.
Investors can join its sale by visiting Solaxy’s official website, where SOLX is available at $0.00164.
