Dubai, UAE, March 14th, 2025, Chainwire
DWF Labs has published a report proposing a number of solutions to support fair token launches. Prompted by the notorious failure of the $LIBRA token, “A Presidential Guide to Token Launches” outlines practical ways in which projects can ensure that buyers aren’t disadvantaged by nefarious actors.
This report provides a post-mortem of the failed $LIBRA token, which reached a $4.5B cap within an hour of launching on Solana in February before crashing. It also examines the history of token launches, spotlighting the different methods that have been attempted as the crypto industry has evolved over the years.
Key drawbacks to existing token launch frameworks pinpointed in the report include insider trading due to information asymmetry; bot and whale domination; and regulatory gaps and enforcement challenges. To address these issues, DWF Labs proposes a number of alternatives and new approaches to token issuance.
These include Debt Issuance, whereby projects issue debt tokens that represent a claim on future revenues or assets; and Liquidity Locking in which LP tokens are locked into smart contracts for a predetermined period, allowing projects to demonstrate their commitment to their token’s long-term success.
To combat bot activity, the report recommends imposing maximum bid or purchase limits per wallet, preventing whales from accumulating a disproportionately large share of tokens in a single transaction. It also notes that social verification methods, such as requiring Twitter account authentication, could reduce bot activity. In addition, it encourages mandatory disclosures such as requiring pre-launch wallet transparency to reduce concentration of token ownership and potential insider trading.
The report concludes: “Despite advancements aimed at enhancing fairness and decentralization, high-profile incidents like the $LIBRA and $MELANIA launches reveal the vulnerability of current systems to insider trading, market manipulation, and regulatory arbitrage. These issues not only erode investor confidence but also threaten the long-term stability of the crypto market, disproportionately impacting retail participants.”
In publishing the report, DWF Labs hopes to encourage projects to commit to higher standards and to adopt best practices. This will enhance the industry’s reputation while giving investors an opportunity to participate in fair launches in which everyone has an equal opportunity.
“A Presidential Guide to Token Launches” can be read in full here.
About DWF Labs
DWF Labs is the new generation Web3 investor and market maker, one of the world’s largest high-frequency cryptocurrency trading entities, which trades spot and derivatives markets on over 60 top exchanges.
Learn more: https://www.dwf-labs.com/
Contact
Head of Marketing
Lynn Chia
DWF Labs
pr@dwf-labs.com
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