Alon, the founder of Solana-based Pump.fun, has called for tighter regulations on memecoin launch platforms. His statement follows the $4 billion collapse of the LIBRA token, with accusations of an “insider scam.”
In a Feb. 18 post on X, Alon expressed his anger over the LIBRA scandal. He criticized the lack of safeguards in token launches, which he believes contributed to the massive losses.
Pump.fun founder Alon expressed his disgust over the LIBRA debacle. Source: XThe LIBRA Token Crash — What Went Wrong?
The LIBRA memecoin launched on Feb. 15 and quickly gained attention after Argentine President Javier Milei endorsed it in a tweet, promoting it as Argentina’s official cryptocurrency. However, the excitement collapsed just hours later when several insider wallets withdrew $107 million from the token’s liquidity pool. This sudden move caused LIBRA’s market value to crash from $4.4 billion to almost zero in six hours. President Milei deleted his endorsement tweet, fueling accusations that the project was a “rug pull” scam.
Alon Pushes for Safeguards to Protect Investors
In response to the chaos, Alon defended his platform Pump.fun, stating that it was designed to prevent insider-controlled launches. However, he stressed that the industry needs stricter measures to safeguard users from similar scams. Pump.fun founder urged memecoin launch platforms to educate users about creating tokens safely and ethically. He also called for better onboarding processes to make it easier for new traders to participate without falling victim to scams.
Alon further emphasized the importance of monitoring trading patterns to reduce the visibility of tokens that show signs of manipulation or suspicious ownership structures. He believes that stronger guardrails are necessary to protect investors and rebuild trust in the crypto space.
Political Memecoins Fail to Deliver Value
The LIBRA collapse is not an isolated incident. The incident follows a series of memecoin scams linked to political figures, which have caused massive losses for investors.
In addition, shortly before the LIBRA scandal, another political-themed token, the KSA memecoin, also crashed This wiped out millions in investor funds. Similar to the LIBRA incident, insider wallets withdrew large sums from the liquidity pool, causing the token’s value to plummet. The rapid collapse followed the same pattern of liquidity draining and insider manipulation.
Moreover, political figures have recently entered the memecoin space, but their projects have largely failed to maintain value. On Jan. 18, former U.S. President Donald Trump launched the Official Trump (TRUMP) token, followed by First Lady Melania Trump’s Melania Meme (MELANIA) token a day later. Both tokens gained attention but quickly lost value as traders dumped their holdings. Investors who bought into the hype suffered losses as the tokens’ prices collapsed shortly after launch.
The Central African Republic (CAR) memecoin also became a target for scams. As CoinChapter reported, phishing links claiming to distribute CAR tokens surfaced on multiple crypto platforms. Many users who clicked on these fraudulent links lost their funds.
The post Pump.fun Founder Demands Stricter Rules for Memecoins After LIBRA Collapse appeared first on Coinchapter.
%%featured_image%%
