The founder of Pump.fun is advocating for safeguards on memecoins following the controversy surrounding “Libragate.”
Alon, who founded Pump.fun, has strongly condemned the LIBRA token’s $4 billion crash.
As the effects of the LIBRA memecoin incident unfold, the founder of Pump.fun, a Solana-based token issuance platform, is demanding new protective measures for token launchpads.
Posting on X on February 18, Alon, the anonymous founder of Pump.fun, denounced the LIBRA memecoin launch as an “insider scam.” The token, which Argentine President Javier Milei briefly referenced, has drawn accusations of being a deceptive rug pull scheme.
LIBRA, which debuted on February 15, was publicly shared by President Milei as Argentina’s official token.
Multiple wallets swiftly withdrew over $107 million in single-sided liquidity, coinciding with Milei’s removal of his endorsement tweet, which caused LIBRA’s market cap to collapse by $4.4 billion in six hours.
In response to criticism, Alon argued that his platform was developed as a protective measure against token launches dominated by insiders.
He has called for enhanced protections on token launch platforms to “ensure users are as safe as possible while meeting their demands.”
Alon proposed focusing on educating users about responsible coin creation, making it easier for new traders to get started, and boosting security by limiting exposure to tokens with questionable trading patterns or ownership.
Meow, co-founder of Meteora and Jupiter, confirmed on X on February 18 that Ben Chow has resigned from his position at Meteora.
Meow mentioned that Chow stepped down due to his “lack of judgment and care” in handling important project matters recently, but didn’t go into further detail.
While some critics have accused the Meteora team of collaborating with Hayden Davis from Kelsier Ventures, who is behind the LIBRA token, Meow insisted that neither Meteora nor Jupiter were implicated in any wrongdoing.
“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.”
On February 17, Chow issued a statement on X, refuting allegations of any insider involvement at Meteora in connection with the LIBRA launch.
Chow asserted that neither he nor the Meteora team handled tokens “on the side” or possessed any knowledge of “off-chain dealings.”
“To maintain the high levels of confidentiality, very few people in Meteora have access to any launch information,” said Chow.
“Neither I nor the Meteora team compromised the $LIBRA launch by leaking information, nor did we purchase, receive, or manage any tokens.”
He clarified that the relationship between Meteora and LIBRA deployer Davis wasn’t “exclusive or unique.”
After the LIBRA scandal, Meow said he would hire the Fenwick and West law firm to look into it and come up with an independent report. This firm is currently being sued for allegedly helping FTX hide its ties to Alameda Research in 2022.
In late November 2024, Pump.fun indefinitely suspended its livestreaming feature due to safety concerns and widespread criticism of harmful and unsafe broadcasts.
Following losses incurred by certain investors, legal action was taken against Pump.fun at the onset of February. The lawsuit claims that tokens generated through the platform ought to comply with U.S. securities regulations. According to the investors, the platform does more than just give users tools; it also takes part in making and selling these tokens, which makes it a “joint issuer” of unregistered securities.
