🌎 LIBRA Collapse Sparks Calls for Stricter Crypto Regulations

The recent collapse of the LIBRA memecoin has sparked calls for stricter regulations on token launchpads to protect users from insider scams and manipulative token launches. Amid the fallout, Pump.fun’s founder, Alon, expressed his disgust at the events surrounding LIBRA, stating that the people behind the project made substantial personal gains at the expense of many users, the ecosystem, and even an entire country.

LIBRA’s Impact on the Crypto Ecosystem

Alon 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 that “anyone can do” without relying on such actors, who can take advantage of the process. He 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.

Calling for Better Protections

Alon 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: 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.
Onboarding: Onboarding for new traders needs to be more accessible, ensuring that users are guided based on their level of trading experience.
User Protection: Stronger user protection measures are needed at the “interface level,” including limiting the visibility of tokens with suspicious trading activity and ensuring features like slippage settings are reasonable.

Users should be able to make their own decisions and take responsibility instead of relying on third parties.

The LIBRA Incident

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.

As the crypto community continues to grapple with the fallout from the LIBRA incident, it’s clear that stricter regulations and better protections are needed to ensure user safety. Stay up-to-date with the latest news and developments on Global Crypto News.