TL;DR
- Alon, founder of Pump.fun, calls for stricter regulations following the collapse of the LIBRA token, which caused $4.4 billion in losses in six hours.
- Argentine President Javier Milei endorsed the LIBRA token but later deleted his tweet after $107 million was drained from its liquidity pool.
- Meteora faces criticism after the LIBRA scandal, with Ben Chow resigning and lawyers being hired to investigate the case.
Pump.fun founder Alon has called for stricter regulations to be applied to token launch platforms following the collapse of the LIBRA token, which led to a loss of $4.4 billion in just six hours.
On February 15, Argentine President Javier Milei shared the LIBRA token from his official account, but shortly after, a series of wallets drained over $107 million from its liquidity pool. The situation triggered a market crisis, as Milei deleted the tweet in which he had endorsed the token.
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.
I hope the people responsible get what they deserve.
I’m…
— alon (@a1lon9) February 17, 2025
In response to this situation, Alon expressed being “disgusted” by the event and suggested that security measures must be implemented to avoid such incidents. He proposed that token launch platforms include mechanisms to protect users, such as education on how to create tokens ethically and securely. He also emphasized the importance of making the onboarding process more accessible for new traders and reducing the visibility of tokens showing suspicious trading patterns.
Pump.fun Calls for More User Protection
Alon also defended his platform Pump.fun, arguing that it was created to prevent insider-controlled token launches and protect users from fraud. According to him, the goal of these platforms should be to ensure processes are secure and that users’ expectations are met, without compromising the integrity of the system.
Meanwhile, the controversy surrounding the LIBRA collapse has also affected other platforms. Ben Chow, co-founder of Meteora, resigned from his position due to issues related to his judgment on key aspects of the project. While there has been speculation about Meteora’s potential complicity with LIBRA creator Hayden Davis, Meow, another co-founder of Meteora, defended the team, stating that there was no fraud or mismanagement of tokens.
After the scandal, Meow announced that they would hire a law firm to investigate the case and issue an independent report. The situation has highlighted the need for greater transparency and regulations for token launches, especially in the memecoin market.
