In the wake of the recent $LIBRA memecoin collapse, which saw over $4 billion in market capitalization erased within hours, the founder of the Solana-based platform Pump.fun, known pseudonymously as Alon, has called for enhanced safeguards in token launchpads to protect users from similar incidents.Â
The $LIBRA token, promoted by Argentine President Javier Milei as a project aimed at boosting the nation’s economy, experienced a meteoric rise followed by a swift downfall. Shortly after its launch, significant amounts of liquidity were siphoned off by several wallets, leading to allegations of an “insider scam” and prompting political and legal repercussions for President Milei.
Expressing his dismay over the incident, Alon described the events surrounding $LIBRA as “disgusting” and emphasized the need for platforms like Pump.fun to implement measures that ensure user safety while meeting market demands. He proposed several initiatives, including educating users on the ethical creation of tokens, simplifying the onboarding process for new traders, and reducing the visibility of tokens exhibiting suspicious trading patterns or ownership structures.
In a related development, Ben Chow, co-founder of Meteora, has resigned from his position following criticisms of his judgment concerning core aspects of the project. While Meteora and its associated platform, Jupiter, have faced accusations of involvement in the $LIBRA debacle, co-founder Meow has denied any wrongdoing, asserting that no team members engaged in insider trading or received inappropriate tokens.
The $LIBRA incident has underscored the vulnerabilities within the rapidly evolving memecoin market, highlighting the necessity for robust protective measures to prevent future occurrences of fraud and to maintain investor confidence.
