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Calls for stricter rules on political memecoins after $4B Libra collapse

  • March 14, 2025
  • Posted by: admin
  • Category: BitCoin, Blockchain, Cryptocurrency, Investments
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Crypto firms push for stricter rules on politically endorsed tokens after the $4 billion Libra collapse, citing liquidity locks and insider trading restrictions as solutions

Industry voices warned that politically endorsed cryptocurrencies must adopt stronger investor protections and liquidity safeguards to prevent another major market collapse.

Investor sentiment remains shaken after the Libra (LIBRA) token, which was endorsed by Argentine President Javier Milei, suffered a $4 billion market cap wipeout due to insider cash-outs.

According to blockchain analytics firm DWF Labs, at least eight insider wallets withdrew $107 million in liquidity, triggering the massive collapse.

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