Industry voices have warned that politically approved cryptocurrencies must accept stronger investors’ security and liquidity protection to prevent another earnest fall of the market.

Investors’ sentiments remain shocked after the weight token (Wabra), which was approved by the Argentine President Javier Milei, suffered a market cap worth $ 4 billion due to payment of impressions.

According to Blockchain Analytics, DWF Labs, at least eight confidential portfolios withdrew $ 107 million, causing a huge fall.

To avoid a similar crash, tokens with presidential recommendations will require more solid security and economic mechanisms, such as blocking liquidity or creating tokens in a liquidity pool that are not sold by a predetermined period, wrote DWF LABS in a report made available by Cointelegraph.

The report stated that the tokens of renowned leaders would also need starting restrictions to limit the share of cryptocurrency bots and immense owners or whales.

“Limiting the activity of bots and whale is necessary in limiting the impact of people acting on confidential information to turn off a large percentage of token supply, according to Andrea Gachev, managing partner in DWF Labs:

“Projects must strive to ensure that all participants have equal chances to provide allocation and are not in an adverse situation by a handful of well -financed or well -informed players who claim that the lion’s share of delivery.”

According to the DWF Labs report, the Libra scandal meant that 74,698 traders lost their capital of $ 286 million.

Fast crash of the token illustrates the need to block liquidity, which “ensures sufficient liquidity for buying and selling without a high slip,” said Gachev, adding:

“This is particularly valuable during the token starting phase, when there is a high volatility, ensuring sufficient liquidity to satisfy immense transactions without much effect on the price.”

The DWF Labs report appears a week after New York legislators have introduced legislation to protect cryptographic investors against rugs and confidential fraud among the latest wave of Memecoin fraudsters.

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More transparency needed to the premieres of tokens

Crack of the token weight illustrates the need for more transparent token starting mechanisms, explained the GRACHEV DWF LABS, adding:

“They include the transparency of the introductory portfolio and running lead and better due diligence in the field of projects.”

“When starting any token, there is always a degree of risk, which cannot be easily alleviated,” he said.

“Nevertheless, carefully analyzing the projects with which they cooperate and in full employ of transparency, which is one of the basic functions of blockchain, Launchpads may enable users to make more conscious decisions,” he added.

Related: Memecoins: From social experiment to tools “value extraction”

There have been some disturbing events since the Memecoin crash approved by the Argentine president, in the fact that the weight was a “open secret” in some Memecoin circles, which were aware of the premiere of the token up to two weeks.

Milei asked the Anti -Corruption Bureau to examine all members of the government, including the president, for potential improper behavior, According to to a statement on February 16 issued by the Presidential Office of Argentina, Oficini del President.

Milei is in the face of impeachment from its political opponents after approving the cryptocurrency, which turned into a $ 100 million rug.

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