The founder of the Solana-based token launchpad Pump.fun, known as Alon, has called for stricter regulations for platforms that facilitate token launches following the controversial LIBRA memecoin incident.
On February 18, he expressed frustration over what he termed an “insider scam” after LIBRA briefly gained attention when endorsed by Argentine President Javier Milei. However, shortly after its launch on February 15, over $107 million was drained from LIBRA’s liquidity pool, leading to a rapid market cap collapse of $4.4 billion within six hours, prompting Milei to delete his promotional tweet.
Alon defended Pump.fun’s role in preventing insider-dominated token launches but recognized the need for more user protections. He recommended that token-launching platforms enhance user education on ethical token creation, simplify onboarding for new traders, and improve safety by limiting the visibility of tokens with suspicious trading patterns or ownership structures.
Meanwhile, the controversy surrounding LIBRA has also led to leadership changes at another firm. Ben Chow, co-founder of the decentralized finance platform Meteora, has stepped down from his role due to concerns about his judgment and care, as stated by fellow co-founder Meow. The announcement comes amid speculation about Meteora’s potential ties to Hayden Davis from Kelsier Ventures, which is associated with LIBRA. Meow denied any wrongdoing by the Meteora team.
Chow stated on February 17 that he addressed allegations of insider activity related to LIBRA’s launch, denying that he or anyone at Meteora was involved. He clarified that neither he nor his team manages tokens outside official channels or has access to confidential off-chain dealings. Additionally, Chow minimized the relationship between Meteora and the LIBRA deployer, stating it was not exclusive or unique.
Notably, Bubblemaps analysts have found evidence linking the launch of the LIBRA memecoin to the team responsible for the controversial Melania (MELANIA) token. Their investigation suggests a pattern of market manipulation involving pump-and-dump schemes.
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