The founder of the Solana-based Pump.fun platform, known pseudonymously as Alon, has called for tighter regulations on token launchpads following the recent controversy surrounding the LIBRA memecoin.
The incident, which has been described as an “insider scam,” gained widespread attention after Argentine President Javier Milei briefly shared the token.
Many in the crypto community have accused the project of being an elaborate rug pull, leading to significant financial losses for investors.
Alon Condemns LIBRA Memecoin Controversy
In a post on X (Twitter) on February 18th, Alon expressed his deep frustration over the LIBRA situation. He described the event as a disgraceful act that benefited a few individuals while harming users, the broader crypto ecosystem, and even an entire country.
He called for accountability, stating that those responsible should face consequences for their actions. Acknowledging the complexity of the unfolding situation, Alon encouraged individuals with knowledge of misconduct within the ecosystem to come forward, regardless of the scale of the wrongdoing.
He even offered to assist those who might be in difficult positions, keeping his direct messages open for anyone seeking help.
Alon emphasized that Pump.fun was created to address the very issues that the LIBRA memecoin controversy has exposed. According to him, the involvement of middlemen—such as development teams and market makers—contradicts the fundamental idea of memecoins.
He argued that launching a memecoin should be so straightforward that it eliminates the need for intermediaries, thereby reducing opportunities for bad actors to exploit investors.
The Future of Memecoins and the Need for Guardrails
Following the LIBRA incident, some have speculated that it could mark the downfall of the memecoin market. However, Alon dismissed this idea, asserting that the demand for permissionless, on-chain speculation is here to stay.
He pointed out that the behaviours seen in memecoin trading have long existed in various forms, from Dogecoin to ICOs and the NFT boom. In an increasingly attention-driven economy, people will continue to trade assets linked to world events, culture, and technology.
Given this reality, Alon argued that platforms like Pump.fun must introduce safeguards to protect users while still catering to market demand.
One major issue he highlighted was the lack of education on how to safely and ethically create tokens. While Pump.fun has simplified coin creation, many crucial aspects remain unaddressed, such as setting clear expectations, managing token supply, handling trading strategies, and understanding when profit-taking is ethical.
Alon stressed that education is vital to ensure users can make informed decisions rather than relying on third-party advice. Another challenge is the onboarding process for new traders.
Also Read: Crypto Lawyer Reveals $286 Million Lost By 74,000 Traders Amid LIBRA Token Collapse
The accessibility of permissionless ecosystems attracts both experienced traders and newcomers. However, Alon pointed out that many platforms and influencers focus too much on promoting advanced trading tools, which can be overwhelming for inexperienced users.
User protection is another key area that requires attention. Although no permissionless platform can fully prevent bad outcomes, Alon argued that interfaces can do more to safeguard users.
Measures such as limiting the visibility of tokens with suspicious trading patterns, setting reasonable default slippage settings, and introducing more protective features can help reduce risks.
Meteora Co-Founder Resigns Amid Fallout
In a related development, Ben Chow, the co-founder of the DeFi project Meteora, has resigned from his position. His resignation was announced by Meow, the founder of Jupiter and a fellow Meteora co-founder, in a post on X.
While Meow did not provide detailed reasons, he attributed the decision to Chow’s “lack of judgment and care” in overseeing core aspects of the project over the past few months.
The LIBRA memecoin controversy has sparked a broader discussion within the crypto community about the ethics of token launches and the responsibility of platforms facilitating them.