The inkra’s token scandal has taken the cryptographic industry assault, which caused several debates about user protection, market status and bad actors who take advantage of the memecoin frenzy of the cycle. The founder of Pump. Fun joined the discussion and urged Token Launchpads to work on practices to improve the space.
Memeño sector of the Token scandal of Libra Shakes
On Monday, Alon Cohen, the founder of Bump. Fun took X to discuss The current state of the Memecoin sector after the recent “Libragate” controversy. Cohen expressed his disgust for the events that “occurred in the last days surrounding Libra”, since the people responsible for the project took advantage of many users, the ecosystem, “and even an entire country.”
Pump.fun's founder weighs in on the Libra token controversy. Source: Alon on X
The “Liva La Libertad” project and its token, Libra, launched on Friday and quickly caught attention after Argentina’s president, Javier Milei, supported him in a position now eliminated. The project allegedly aimed “to encourage the economic growth of Argentina by financing small businesses and new companies”, reaching a market capitalization of more than $ 4.5 billion in less than an hour.
However, the wallets and experts of the project team began to collect, selling more than $ 100 million and blocking the token assessment in more than 90% in a few hours. Since then, President Milei has distanced himself from the project and has declared in a interview that he “did not promote it” but “spread it.”
Cohen believes that the incident has significantly harmed Memecoin’s space, “especially because the pump. Fun was built to explicitly address some of the problems that have been exposed” this weekend.
He criticized the need for a development team similar to intermediaries and the participation of market manufacturers, pointing out that a memory “should be stupidly simple that anyone can do it” and suggest that the existence of these actors allows anyone easily .
When we create Fun Fun, from the beginning, it was proposed to standardize, automate and democratize the creation of currencies to build a level of reference for security, simplicity and equity for each launch.
Better user protection is required
The founder of the bomb. Fun noticed the growing aversion towards Memecoins, but said that “the same behavior of the central user you are seeing in the Memecoin space has existed before” in other sectors, including NFT and Defi.
Cohen defends the memecoin sector. Source: Alon on X
He suggested that Memecoin platforms such as the sole launch in Solana should provide railings that guarantee that users are as safe as possible and meet their demands simultaneously. He listed three actions that could help achieve better user protection.
First, Cohen considers that educating users about creation tokens safely and ethical is important. According to the post, there is a lack of education about what a creator of Memecoin does after launching the Token, how to establish expectations, how much of the offer to buy and when to obtain profits, or what to do with snipers.
Secondly, he suggested that the incorporation must be more friendly to the new merchants, noting that the ecosystem should incorporate new users in a way that “adapts to the user’s commercial experience”, since only promoting advanced commercial tools is “Simply irresponsible.”
Finally, the founder of Pump. Fun believes that user protection should be taken more seriously “at an interface level.” For him, interfaces can create a safer environment, reduce the visibility of tokens that show suspicious activities, establish reasonable sliding settings and more to “make this space large again.”
Cohen’s Post caused a discussion about what Memecoin Launchpads do to protect users. Some members of the community considered that the thread is something hypocritical according to the previous controversies of the bomb.
As reported by Bitcoinist, the Solana -based platform faced strong criticism in November 2024 after users exploded the live broadcast feature now insecure of the launch to promote tokens based on controversial and potentially harmful indications.
Others called The platform a “carpet factory” that offers “scam currencies and extraction rates”, with a user which indicates that the launch of Cohen has “extracted more money from Solana than anything else for a long shot.”
Meanwhile, a bomb user. He pointed out the importance of railings, since several tokens have disguised malicious links on the platform as project information pages.
The scope of Token’s repercussions of Libra has not yet been seen, but has paid attention to the growing exhaustion of users on the continuous bad practices of malicious actors who try to benefit from cryptographic investors.
Solana (SOL) trades at $169.25 in the one-week chart. Source: SOLUSDT on TradingView
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