In light of the ongoing scandal caused by the LIBRA memecoin launch, the founder of the Solana-based Pump.fun has called for new rules to be put in place for token launchpads. The anonymous founder said that he was “disgusted” by what happened with the launch of the LIBRA memecoin.
Today, in a post, pseudonymous Pump.fun founder alon said that Pump.fun did a great job by making it very easy to make a coin. He wrote, “Creating a memecoin should be so stupidly simple that anyone can do it.”
What this means is that there shouldn’t be middlemen like development teams and market players involved. Therefore he asserted, “The mere existence of such actors means that anyone can easily be taken advantage of.”
It has been a circus keeping track of everyone people involved in the LIBRA scam. The president of Argentina initially advertised the token, but later, his office issued a statement distancing him from LIBRA. It emphasized that he was not involved in the currency’s development.
On the other hand, the person responsible for creating LIBRA, Davis Hayden, said the token lost control when President Javier Milei officially endorsed the token only to deny it.
This, according to him, is what caused the market to crash almost right away. Several wallets took more than $107 million in one-way liquidity from the token’s liquidity pool. In response, the market cap dropped by $4.4 billion in just six hours.
Javier Milei just DESTROYED the memecoin market:
Hours ago, Argentinian President Milei launched a memecoin, $LIBRA, for “the growth of their economy.”
Within 5 hours, over -$4.4 BILLION of market cap was erased.
Is this the biggest rug pull in history?
(a thread) pic.twitter.com/t4T69r851d
— The Kobeissi Letter (@KobeissiLetter) February 15, 2025
Hayden called himself a “launch strategist” instead of the project’s main idea-maker. He also said that he has been closely watched and has been threatened, accused, and put under a lot of pressure from everyone. Now, he claims that he’s sitting on $100 million in missing funds and doesn’t know what to do with it.
Pump.fun founder’s thoughts on memecoins regulations
Alon felt sorry that there hadn’t been much education on these topics. However, he advised investors that it’s better for them to be able to make their own choices and be responsible than to have to depend on other people.
That being said, it’s important for platforms like pump fun to provide guardrails to ensure users are as safe as possible *while meeting their demands*
Here are my thoughts on some things that should be focused on to achieve that:
1) Educate users on how to safely and ethically…
— alon (@a1lon9) February 17, 2025
Alon said that it’s irresponsible to only promote advanced trading tools. This is because there are a lot of possibilities in an ecosystem that is open to everyone without permission. This means that there are strong reasons for more and more professional traders to join and take advantage
In addition, he said that user safety needs to be taken more seriously at the interface level. He suggested that although a permissionless platform cannot completely stop bad things from happening on chain interfaces, it can make them safer by hiding coins with sketchy trading patterns. This would set acceptable default slippage levels and more.
When it comes to memecoins, the market can be manipulated the most. More leaders from around the globe have joined with the claim on economic growth this year. One of them is the president of the Central African Republic.
Trump also started a memecoin right before he entered office.
Meteora co-founder Ben Chow resigns
According to reports, Ben Chow, one of Meteora’s founders, has quit his job at the company. Meow, a co-founder at Meteora shared a post today about the fallout from the failed LIBRA launch on X.
Meow said that Chow quit because he had a lack of judgment and care over some important parts of the project over the last few months. However, he didn’t say more.
Hi, I’m meow from Jupiter, and I also cofounded Meteora.
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…
— meow (🐱, 🐐) (@weremeow) February 18, 2025
Some people have accused Meteora’s team of working with Hayden Davis of Kelsier Ventures, the man behind the LIBRA token. Ben Chow also denied any insider activity at Meteora surrounding the launch of LIBRA.
Chow claimed that neither he nor the Meteora team ever get or handle tokens on the side, nor do they learn about off-chain dealings. He wrote, “To maintain the high levels of confidentiality, very few people in Meteora have access to any launch information.”
The companies have hired Fenwick & West to investigate the claims independently. Meow said everyone would be able to see the probe’s results. Meteora has been running without Jupiter for more than a year, and Chow was in charge, with Meow playing a minor role.
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Source: https://www.cryptopolitan.com/pump-fun-founder-asks-memecoin-guardrails/