Solana DEX Meteora Scrambles for Damage Control After LIBRA Fallout

Ben Chow, associated with Solana DEX Meteora, has reportedly stepped down in the wake of the Libra scandal. His resignation was notified by Meow, the pseudonymous co-founder of both Meteora and Jupiter. Chow issued an apology and denied personally receiving or managing LIBRA and MELANIA outside of their platform, maintaining strict confidentiality.

Chow clarified that Meteora’s involvement with LIBRA was only limited to providing technical assistance. He acknowledged a mistake in not prioritizing a user-friendly launch product, leading to excessive “hand-holding. He also admitted referring deployer/market-maker Hayden Davis of Kelsier Ventures to projects, including the MELANIA team, and providing IT support.

Source: TradeDucky

Meow, co-founder of Jupiter and Meteora, also took to X to address Ben Chow’s apology and the ongoing LIBRA/MELANIA controversy. He reiterated that no insider trading or financial wrongdoing occurred within Jupiter or Meteora.

To ensure transparency, the DEX has hired a reputable law firm Fenwick & West, to conduct an independent investigation and publish the findings. Meow expressed support for Ben Chow’s statement, believing in his integrity regarding financial dealings.

Meow further emphasized Jupiter’s commitment to token transparency, citing three audits and a policy of no OTC token sales. He highlighted Jupiter’s non-extractive approach, low fees, and reinvestment in the Solana ecosystem.

Meteora vs. Solana DEX Downturn: A Volume Surge Amidst Declines

Meanwhile, the controversies surrounding LIBRA and MELANIA likely created significant volatility and speculative trading opportunities. Traders might have flocked to Meteora to capitalize on these price swings, leading to increased volume.

As reported by TronWeekly, Raydium and Orca, two leading Solana-based DEXs, have recorded substantial declines in trading volume over the past week, with drops of 39.16% and 41.42%, respectively.

Notably, Meteora, was among the handful of DEXes to buck the trend and record an 18.65% increase in trading volume. Even though the founders have denied any wrongdoing, the speculation of insider trading could have likely led to a large amount of trading volume. Traders could have been attempting to get in or out of positions based on rumors and speculation.