{"id":13833,"date":"2025-02-19T07:32:34","date_gmt":"2025-02-19T07:32:34","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=13833"},"modified":"2025-02-19T07:32:34","modified_gmt":"2025-02-19T07:32:34","slug":"pump-funs-founder-sparks-user-protection-debate-urges-memecoin-launchpads-to-develop-better-practices","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=13833","title":{"rendered":"Pump.Fun\u2019s Founder Sparks User Protection Debate, Urges Memecoin Launchpads To Develop Better Practices"},"content":{"rendered":"
\n

The ongoing LIBRA token scandal has taken the crypto industry by storm, sparking several debates regarding user protection, the market\u2019s state, and bad actors taking advantage of the cycle\u2019s memecoin frenzy. Pump.fun\u2019s founder joined the discussion and urged token launchpads to work on practices to improve the space.<\/p>\n

Libra Token Scandal Shakes Memecoin Sector<\/h2>\n

On Monday, Alon Cohen, Pump.Fun\u2019s founder took X to discuss<\/a> the current state of the memecoin sector following the recent \u201cLibragate\u201d controversy. Cohen expressed disgust over the events that \u201ctranspired over the past days surrounding LIBRA,\u201d as the people responsible for the project took advantage of many users, the ecosystem, \u201cand even an entire country.\u201d<\/p>\n

\"memecoin\"<\/p>\n

The \u201cViva La Libertad\u201d Project and its token, LIBRA, was launched<\/a> on Friday and quickly gained attention after Argentina\u2019s President Javier Milei endorsed it in a now-deleted post. The project allegedly aimed to \u201cencourage Argentina\u2019s economic growth by funding small businesses and startups,\u201d reaching a market capitalization of over $4.5 billion in less than an hour.<\/p>\n

However, the project\u2019s team wallets and insiders started to cash out, selling over $100 million and crashing the token\u2019s valuation by over 90% in a few hours. Since then, President Milei has distanced himself from the project and stated in an interview<\/a> that he \u201cdidn\u2019t promote it\u201d but \u201cspread it.\u201d<\/p>\n

Cohen considers that the incident has significantly hurt the memecoin space<\/a>, \u201cespecially as Pump.fun was built to explicitly tackle some of the issues that have been exposed\u201d this weekend.<\/p>\n

He criticized the need for a middlemen-like development team and market makers\u2019 involvement, noting that a memecoin \u201cshould be stupidly simple that anyone can do it\u201d and suggesting the existence of these actors enables anyone to be taken advantage of easily.<\/p>\n

\n

When we created pump fun, from the very start, it set out to standardize, automate, and democratize coin creation to build in a baseline level of safety, simplicity, and fairness for every launch.<\/p>\n<\/blockquote>\n

Better User Protection Required<\/h2>\n

The Pump.fun\u2019s founder noted the growing aversion towards memecoins but pointed out that \u201cthe same core user behaviors that you\u2019re seeing in the memecoin space have existed before\u201d in other sectors, including NFTs and DeFi.<\/p>\n

\"memecoin\"<\/p>\n

He suggested that memecoin platforms like the Solana-based launchpad should provide guardrails that ensure users are as safe as possible and meet their demands simultaneously. He listed three actions that could help achieve better user protection.<\/p>\n

First, Cohen considers educating users on safely and ethically creating tokens is important. According to the post, there\u2019s a lack of education on what a memecoin creator<\/a> does after launching the token, how to set expectations, how much of the supply to buy and when to take profit, or what to do about snipers.<\/p>\n

Second, he suggested that onboarding needs to be friendlier for new traders, noting that the ecosystem should onboard new users in a way that \u201cis suited to the user\u2019s trading experience,\u201d as just promoting advanced trading tools is \u201csimply irresponsible.\u201d<\/p>\n

Lastly, Pump.fun\u2019s founder believes that user protection must be taken more seriously \u201con an interface level.\u201d To him, interfaces can create a safer environment, reduce the visibility of tokens that display suspicious activity, set reasonable slippage settings, and more to \u201cmake this space great again.\u201d<\/p>\n

Cohen\u2019s post sparked a discussion about what memecoin launchpads do to protect users. Some community members considered the thread to be somewhat hypocritical based on Pump.fun\u2019s previous controversies.<\/p>\n

As reported<\/a> by Bitcoinist, the Solana-based platform faced heavy criticism in November 2024 after users exploited the launchpad\u2019s now-unavailable Livestreaming feature to promote tokens based on controversial and potentially harmful prompts.<\/p>\n

Others called<\/a> the platform a \u201crug pull factory\u201d that offers \u201cscam coins and extract fees,\u201d with one user stating<\/a> that Cohen\u2019s launchpad has \u201cextracted more money out of Solana than anything else by a longshot.\u201d<\/p>\n

\u00a0Meanwhile, a Pump.fun user pointed out the importance of guardrails as several tokens have disguised malicious links in the platform as the project\u2019s information pages.<\/p>\n

The extent of the Libra token\u2019s repercussions is yet to be seen, but it has put the spotlight on users\u2019 growing exhaustion about the continuous bad practices of malicious actors trying to benefit from crypto investors.<\/p>\n

\"Solana,<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The ongoing LIBRA token scandal has taken the crypto industry by storm, sparking several debates regarding user protection, the market\u2019s state, and bad actors taking advantage of the cycle\u2019s memecoin frenzy. Pump.fun\u2019s founder joined the discussion and urged token launchpads to work on practices to improve the space. Libra Token Scandal Shakes Memecoin Sector On […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-13833","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/13833","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13833"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/13833\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13833"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13833"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13833"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}