Following the controversy surrounding the launch of the LIBRA memecoin, the founder of Pump.fun, a platform on the Solana blockchain, has advocated for the introduction of new regulations for token launchpads. The anonymous founder voiced his “disgust” at the events that unfolded during the LIBRA memecoin launch.

In a recent post, alon, the pseudonymous founder of Pump.fun, stated that his platform has successfully simplified coin creation. He commented, “Creating a memecoin should be so stupidly simple that anyone can do it.” 

He argues that intermediaries such as development teams and market makers should be eliminated. He asserted, “The presence of such intermediaries creates vulnerabilities that can be easily exploited.”

The LIBRA situation has been chaotic, involving numerous individuals. Initially, the President of Argentina promoted the token, but his office later released a statement distancing him from LIBRA, clarifying that he had no involvement in its creation.

On the other hand, Davis Hayden, the creator of LIBRA, attributed the token’s loss of control to President Javier Milei’s initial endorsement followed by a subsequent denial. 

According to Hayden, this sequence of events triggered an almost immediate market crash. Reportedly, various wallets extracted over $107 million in liquidity from the token’s liquidity pool, causing the market capitalization to plummet by $4.4 billion within 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 described himself as a “launch strategist” rather than the project’s originator. He also claimed to be under intense scrutiny, facing threats, accusations, and significant pressure. Currently, he states he is in possession of $100 million in unaccounted funds and is uncertain of what to do with them.

Pump.fun Founder’s Stance on Memecoin Regulations

Alon expressed regret over the lack of public understanding regarding these issues. However, he advised investors that empowering them to make their own informed decisions and take responsibility is preferable to making them reliant on others.

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 argued against solely promoting sophisticated trading tools. He emphasized the vast potential within a permissionless ecosystem accessible to everyone, which naturally attracts experienced traders seeking opportunities to capitalize.

Furthermore, he stressed the need for enhanced user safety at the interface level. He suggested that while a permissionless platform cannot entirely prevent harmful on-chain activities, it can improve safety by concealing tokens exhibiting suspicious trading patterns, implementing reasonable default slippage settings, and taking other similar measures.

Memecoin markets are particularly susceptible to manipulation, and numerous global leaders are now endorsing them as a means to stimulate economic growth. The President of the Central African Republic is among them. 

Notably, Trump also initiated a memecoin venture prior to assuming office.  

Meteora Co-founder Ben Chow Steps Down 

Recent reports indicate that Ben Chow, a co-founder of Meteora, has resigned from his position. Meow, another co-founder at Meteora, shared a post on X today discussing the repercussions of the unsuccessful LIBRA launch. 

Meow stated that Chow’s resignation was due to lapses in judgment and insufficient oversight regarding critical aspects of the project in recent months. However, he provided no further details.

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

Accusations have arisen suggesting collaboration between the Meteora team and Hayden Davis of Kelsier Ventures, the individual behind the LIBRA token. Ben Chow has also denied any insider trading activities at Meteora related to the LIBRA launch.

Chow asserted that neither he nor the Meteora team receive or handle tokens privately, nor do they possess knowledge of off-chain transactions. He explained, “To ensure maximum confidentiality, only a select few individuals within Meteora have access to launch details.” 

The companies have engaged Fenwick & West to conduct an independent investigation into these claims. Meow assured that the findings of the investigation will be made public. Meteora has operated independently from Jupiter for over a year, with Chow leading operations and Meow in a supporting role. 

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Source: cryptopolitan.com