Jupiter Exchange, a decentralized exchange (DEX) on Solana blockchain, has issued a detailed statement addressing allegations of insider trading and partiality surrounding the launch, crash of the $LIBRA memecoin. The token associated with Argentine President Javier Milei has been at the center of the controversy, which involves accusations of fraud and market manipulation.
Jupiter Denies Involvement
Jupiter posted a statement on social media platform X (formerly known as Twitter), where the DEX denied any direct involvement with the launch of the $LIBRA token. The exchange, however, pointed out that few of its members did know about the project as an “Argentine Coin,” which was two weeks prior to the launch through Kelsier Ventures.
Furthermore, the DEX added that the members were unaware of the launch date, time, or contract address. Jupiter also emphasized that the team members have not been involved in any of the dealings between Melei and the market makers.
Justification on the Verification Process
$LIBRA token was given a verified badge by Jupiter, and the reason has to be explained by the DEX. According to the statement on X, Jupiter did not pre-verify or instantly verify $LIBRA’s contract address. Verification occurred only after the token gained credibility through Milei’s post from his official account and after the token received sufficient trading volume.
By the time LIBRA was added to Jupiter’s Strict List, which is designed to protect users from counterfeit tokens, the token had already gained a significant amount of traction, with its market cap reaching $1.5 billion. The “Verified” token was added to the token roughly an hour after the launch of the token.
Jupiter further added that none of the team members had received the $LIBRA tokens or any compensation in any other form. The team also carried out an internal investigation and found out that none of the team members were engaged in sniping or trading on non-public information. If they find any of their team members acted on non-public information, actions will be taken.
Future Measures for Transparency
To improve fairness and transparency in future token launches, Jupiter is working on enhanced verification processes, which would include its new Organic Score. The exchange also plans to use on-chain activity to determine the token’s legitimacy rather than manual verification.
The platform acknowledged the issues that are surrounding the memecoin launches and how the current scenario is hurting the reputation of the crypto industry. They also assured users that they are working on systems that would bring solutions to such situations and they are trying their best to make the trading environment safe and trustworthy.
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