The recent launch of the LIBRA memecoin has sparked controversy in the cryptocurrency space, leading the founder of Solana-based platform Pump.fun to call for new guardrails to be implemented on token launchpads. Alon, the pseudonymous creator of Pump.fun, expressed his disgust over the events surrounding the LIBRA launch, which he labeled an “insider scam.” LIBRA, which was briefly endorsed by Argentine President Javier Milei, saw its market cap plummet by $4.4 billion within six hours after over $107 million was siphoned off from the token’s liquidity pool.
I’m disgusted by the events that transpired over the past days surrounding $LIBRA. The people behind this project made substantial personal gains at the expense of many users, the ecosystem, and even an entire country.
— alon (@a1lon9) February 17, 2025
I hope the people responsible get what they deserve.
I’m…
The Feb. 15 launch of LIBRA, marketed as Argentina’s official token, quickly devolved into chaos when several wallets drained liquidity, causing Milei to delete his endorsement tweet. As accusations of a rug pull emerged, Alon emphasized the need for token-launching platforms to adopt measures that would protect users and ensure ethical practices in the space. He advocates for better user education on coin creation, making onboarding more accessible for newcomers, and improving safety by limiting the visibility of tokens with suspicious trading activity or ownership structures.
This call for reform comes as the meteoric rise of meme tokens continues to fuel both innovation and controversy. Alon argues that platforms like Pump.fun, which prioritize transparency and user safety, have an essential role in preventing similar incidents in the future.
Meanwhile, the fallout from LIBRA also affected other players in the space. Ben Chow, co-founder of Meteora, resigned amidst allegations of a lack of judgment and care related to the project. Chow vehemently denied accusations of insider trading, asserting that neither he nor his team had any exclusive knowledge about the LIBRA launch.
Hi, I’m meow from Jupiter, and I also cofounded Meteora.
— meow (🐱, 🐐) (@weremeow) February 18, 2025
Firstly, I’d like to reiterate my confidence that no one at Jupiter or Meteora committed any insider trading or financial wrongdoing, or received any tokens inappropriately.
Secondly, we are hiring an independent 3rd…
With industry figures like Meow from Meteora hiring legal counsel to investigate the LIBRA debacle, it’s clear that the incident has highlighted the urgent need for more stringent oversight in the token launch ecosystem. As the cryptocurrency landscape evolves, the push for regulation and transparency has never been more critical.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Argentine President Milei Denies Wrongdoing in Libra Token Scandal as Market Reacts
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