Amid the fallout from the LIBRA memecoin crash, Pump.fun’s founder has called for stricter guardrails on token launchpads to protect users from insider scams and manipulative token launches.
According to a Feb. 18 X post, the pseudonymous founder of the Solana-based meme coin launcher said he was “disgusted” by the events surrounding LIBRA and the impact it had on the crypto ecosystem.
“The people behind this project made substantial personal gains at the expense of many users, the ecosystem, and even an entire country. I hope the people responsible get what they deserve.” Alon wrote on X.
He criticized the involvement of middlemen like “development teams” and “market makers” in the LIBRA launch, arguing that creating a memecoin should be a simple process so that “anyone can do it” without relying on such actors, who can take advantage of the process.
Alon also defended Pump.fun’s model, saying it was built “to explicitly tackle some of the issues that have been exposed” in the LIBRA fallout by standardizing and automating the token creation process.
Moving forward, he called for token launchpads to implement better protections to “ensure users are as safe as possible while meeting their demands.” He outlined three key areas where improvements are needed—education, onboarding, and user protection.
Alon stressed that while Pump.fun made launching meme coins easy, what happens after a coin is created is largely unaddressed. As such, he argued that users should be better educated on ethical token launches, including setting expectations, managing supply, dealing with snipers, and understanding when it’s appropriate to take profits.
“Users should be able to make their own decisions and take responsibility instead of relying on third parties,” he added.
He also pointed out that onboarding for new traders needs to be more accessible, stressing that professional traders will always find ways to take advantage of opportunities in a free market. According to him, platforms, influencers, and ecosystem players should ensure that users are guided based on their level of trading experience.
Finally, Alon called for stronger user protection measures at the “interface level.” While no permissionless platform can fully prevent “bad outcomes on-chain,” he believes interfaces can create a safer environment by limiting the visibility of tokens with suspicious trading activity and ensuring features like slippage settings are reasonable.
LIBRA, launched on Feb. 15, drew a lot of attention after Argentine President Javier Milei briefly shared it on X, branding it as the official token of Argentina. The endorsement triggered a frenzy, pushing LIBRA’s price to a high of over $4 before crashing below 50 cents within hours.
Allegations of market manipulation emerged after several wallets reportedly siphoned off over $107 million in single-sided liquidity, draining the token’s pool. Shortly after, Milei deleted his post, and LIBRA’s market cap collapsed by $4.4 billion in just six hours.
Milei has refuted claims that he endorsed the token, saying that his intention was only to share information about the token and not encourage people to invest in it.
