"Meme Coin Frenzy Slows as LIBRA Scandal Rocks Pump.fun"

The meteoric rise of cryptocurrency meme coins has shown signs of slowing down following recent political controversies and market volatility. Pump.fun, the leading platform for creating and trading meme tokens on the Solana blockchain, has witnessed a 27% drop in daily trading volume, from $184 million to $134 million, in the wake of the LIBRA token scandal.

Pump.fun, launched in January 2024, had facilitated the creation of over six million meme coins before the downturn. These tokens, primarily serving speculative purposes, have attracted billions in trading volume. The political connection to meme coins gained attention when Donald Trump's token reached a $15 billion market cap before settling at $3.35 billion as of February 19. His wife Melania also launched her own token, which drew high trading volumes.

The LIBRA controversy erupted when Argentine President Javier Milei appeared to endorse the token on social media. Hours later, he removed his posts and claimed he had little knowledge about the token, saying he thought it was a company looking to finance private ventures. On-chain evidence suggested that LIBRA's developers profited quickly from the launch, while many investors suffered losses after the token's value crashed. The incident has led to fraud complaints from Argentine lawyers and sparked debate about regulation.

The fallout has affected Pump.fun's metrics beyond trading volume. The platform registered only 59,000 new wallets on Tuesday, its lowest level of fresh engagement since November 2024. The number of new meme coins launched daily has also dropped from 61,800 to 27,800.

Industry experts have mixed views on the impact of meme coins. Daria Morgen, Head of Research at Changelly, believes these tokens can attract new users to crypto. However, others warn about market manipulation risks. Tobin Kuo, CEO of Seraph Studios, compared the current state of crypto to "the world's largest casino," noting that new investors focus on quick profits rather than blockchain innovation.

The ease of creating tokens through platforms like Pump.fun has raised concerns. Anyone can launch a meme coin instantly, without technical knowledge or identity verification. This has led to numerous pump-and-dump schemes where early investors profit while others face losses. Jessica Zheng, CEO of Cycle Network,