Pump.fun Demands Tougher Token Launch Rules After LIBRA’s $4.4B Collapse
Pump.fun founder Alon has called for stricter regulations on token launchpads to prevent insider manipulation and rug pulls following the Libra meme coin launch.
On February 15, the LIBRA token debuted with apparent support from Argentine President Javier Milei, who temporarily referred to it as Argentina’s “official token.” However, the token’s value plunged within six hours as multiple wallets siphoned over $107 million from its liquidity pool. Milei promptly deleted his endorsement, raising suspicions of a coordinated scheme.
Also read: Solana Meme Coin Platform Pump.fun Faces Cease and Desist
Crypto investors and analysts have dubbed the event an “insider scam,” fueling demands for greater transparency and investor protections within the decentralized finance (DeFi) sector.
Pump.fun Founder Advocates for Industry Reform
In a Feb. 18 post on X, Alon, the pseudonymous founder of Pump.fun on Solana, expressed his frustration over the LIBRA controversy. While defending his platform’s role in preventing insider-controlled token launches, he emphasized the need for additional safeguards to protect users from similar incidents in the future.
Alon proposed improving crypto education, ensuring users understand how to create and trade tokens safely and ethically. He also stressed the importance of making the crypto space more accessible for new traders and limiting visibility for tokens exhibiting suspicious trading patterns or ownership structures.
Also read: Pump.fun Meme Coin Traders Struggle to Realize Major Profits
These measures aim to establish fundamental standards that reduce investment risks while encouraging responsible innovation in the cryptocurrency industry.
Meteora’s Co-Founder Steps Down Amid Controversy
As fallout from the LIBRA incident continues, Meteora co-founder Ben Chow has resigned, according to a Feb. 18 post by Meow, another Meteora co-founder and Jupiter founder. Meow did not provide specific details on Chow’s resignation but cited his “lack of judgment and care” in critical project aspects over the past few months.
Despite rising allegations linking Meteora’s personnel to the LIBRA token launch, Meow has categorically denied any involvement in insider trading or financial misconduct. In a Feb. 17 statement, Chow also denied that Meteora had any privileged knowledge or control over the LIBRA token’s debut.
Also read: Legal Troubles for Pump.fun: Alleging Meme Coins Violate Securities Laws
Independent Investigation Launched
In response to public scrutiny, Meow announced that the legal firm Fenwick & West would conduct an independent investigation into the LIBRA launch. Notably, Fenwick & West is currently facing a lawsuit for allegedly helping obscure the relationship between FTX and Alameda Research in 2022. The findings of this investigation could provide insights into the extent of misconduct and help shape future regulations for meme coin launches.
The LIBRA case shows the growing need for stronger oversight in the cryptocurrency industry. With billions of dollars at stake, investors and developers must advocate for enhanced security measures to prevent future issues. Alon’s proposed guidelines could mark a significant step toward a safer and more transparent crypto ecosystem.
As scrutiny over LIBRA continues, the crypto community will be closely watching for insights that could reshape the future of token launch platforms.
