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
