Crypto firms are advocating for heightened regulations on politically endorsed cryptocurrencies following the $4 billion collapse of the Libra token, which was endorsed by Argentine President Javier Milei. This collapse, exacerbated by insider trading, has prompted calls for stronger investor protections and liquidity safeguards. DWF Labs recommended measures such as liquidity locks and restrictions on token sales for a set period to prevent similar incidents. The report highlighted that the Libra incident resulted in nearly 75,000 traders losing about $286 million. To enhance transparency and fairness in token launches, the report emphasized the importance of pre-launch wallet visibility and due diligence by launchpads. Milei has also requested an investigation into potential misconduct among government members linked to the token's launch. The developments underscore the pressing need for stricter rules and greater transparency in the rapidly evolving memecoin landscape.

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