In fact, according to DWF Labs, these incidents have revealed the vulnerability of current systems, from insider trading to market manipulation, up to regulatory arbitrage.
They claim that “problems of this type not only erode investor confidence, but also threaten the long-term stability of the cryptocurrency market, with a disproportionate impact on retail”.
The presidential guide for launching a token
The report published by DWF Labs falls into the category of institutional research.
The idea is to propose more transparent and fair token launch mechanisms, describing the current issues with existing frameworks and highlighting alternative approaches, such as debt issuance (projects that provide debt tokens representing a claim on future revenue or assets), liquidity locking (locking LP tokens in smart contracts for predetermined periods), and launch restrictions (for mitigating the participation of whale and bot).
Furthermore, it also contains proposals for regulatory and policy improvements.
LIBRA and MELANIA: a practical example in the guide on how to launch a token
The starting point is the recent launches of the LIBRA and MELANIA tokens, which have caused quite a few problems.
The report highlights how the “Viva la Libertad” project, which launched the LIBRA meme token on Solana on February 14, has been accused of insider trading and market manipulation, after some wallets, including that of Kelsier Ventures, earned over 110 million dollars.
The problem, in fact, is that in the very first hour of presence on the crypto market, the token’s valuation skyrocketed to a peak of 1.16 billion dollars in market capitalization, only to crash by more than 95% in the following hours. In total, it is estimated that almost 75,000 traders lost money.
This scandal has been nicknamed “Cryptogate” because it involved the participation and approval of important figures, such as the Argentine president Javier Milei and the investment company Web3 Kelsier Ventures.
