LIBRA Scandal Sparks Calls for Stronger Safeguards on Token Launchpads

The fallout from the LIBRA memecoin debacle continues to ripple through the Solana ecosystem. The founder of the token launchpad Pump.fun called for stricter protections against insider manipulation. The controversy erupted after LIBRA, a token briefly shared by Argentina’s President Javier Milei, saw its market cap plummet by $4.4 billion within hours, leaving investors reeling.

Pump.fun Founder Condemns “Insider Scam”

In a Feb. 18 post on X, Pump.fun’s pseudonymous founder, Alon, expressed his outrage over the situation, referring to LIBRA as an “insider scam.” The token, which launched on Feb. 15, was initially promoted as the official cryptocurrency of Argentina. However, the excitement quickly turned to chaos when multiple wallets drained over $107 million in liquidity from the project, leading to Milei deleting his endorsement.

Despite the backlash, Alon defended his platform, arguing that Pump.fun was built to prevent precisely this type of exploit. However, he acknowledged that more must be done to protect traders, calling for launchpads to implement better safeguards.

His recommendations include educating users on responsible coin creation, improving onboarding for new traders, and implementing automated detection systems to flag tokens with suspicious activity or ownership structures.

Meteora Co-Founder Resigns Amid Scrutiny

Meanwhile, Meteora, another key player in the Solana DeFi space, has found itself entangled in controversy. Ben Chow, co-founder of Meteora, has stepped down from his role, according to a Feb. 18 announcement by his fellow co-founder and Jupiter exchange leader, Meow.

Meow cited Chow’s “lack of judgment and care” in handling critical aspects of the project but stopped short of providing specific details. Meanwhile, online speculation has swirled, with some accusing Meteora of working with Hayden Davis—the figure behind LIBRA—through Kelsier Ventures.

However, Meow firmly denied any wrongdoing, stating, “No one at Jupiter or Meteora committed any insider trading or financial misconduct, nor did we receive any LIBRA tokens inappropriately.”

Meow also announced that he has hired Fenwick & West, a law firm currently facing its own legal challenges over alleged ties to the FTX-Alameda scandal, to conduct an independent investigation into the LIBRA launch.