Alon Cohen, co-founder of popular meme coin creation platform Pump.fun, has condemned the controversy surrounding the Javier Milei-endorsed LIBRA token and called for reforms.

The situation escalated as the Argentine President denied promoting the meme coin, despite his now-deleted post triggering its meteoric rise, while trader Hayden Davis admitted to holding $100 million from the token’s launch.

A Call for Change in Meme Coin Creation

Cohen took to X to express his disgust at the exploitation seen in the LIBRA case, stating that the debacle benefited a select few at the expense of regular investors.

“I’m disgusted by the events that transpired over the past days surrounding LIBRA,” he wrote, adding that he hoped those responsible got what they deserved.

He argued that meme coin creation should be decentralized, automated, and free from control by development teams or market makers, ensuring a level playing field for all participants. According to him, the existence of such middlemen only makes it possible for people to be taken advantage of.

Cohen also pointed out that the LIBRA incident had exposed major flaws in the crypto sector, showing how easily bad actors can manipulate markets and exploit retail investors. Further, he urged those with insider knowledge of any misconduct around the launch to come forward or send direct messages on his X account.

Javier Milei Denies Promoting LIBRA

The Pump.fun co-founder’s call came even as President Javier Milei denied promoting LIBRA. In an interview with Todo Noticias, the 54-year-old insisted he merely helped “spread the word” about the coin and acted in good faith.

Milei’s Valentine’s Day post on X, seemingly endorsing the project, pushed LIBRA’s market cap beyond $4 billion. However, following the ensuing hype, insiders allegedly cashed out on the meme coin’s popularity, walking away with more than $100 million and wiping out 94% of its value in the process.

However, the President’s office clarified that the post that kicked off the frenzy had been misinterpreted and that the government had no official ties to the token. Despite the denials, lawyers in Argentina have filed complaints with the U.S. Department of Justice and the FBI, asking for Milei to be investigated for fraud.

Adding to the controversy, Hayden Davis, who claims to have advised Milei on the LIBRA project, has admitted to holding more than $100 million from its launch. Speaking to Barstool Sports founder Dave Portnoy, who is himself behind the failed JAILSTOOL meme coin, the 28-year-old insisted the funds were meant to be reinvested into the project. According to him, the plan fell apart when Milei failed to post a second promotional video, leaving the funds in limbo.

The crypto trader is now facing scrutiny and fears for his safety, calling the situation a “plan gone miserably wrong.”