Nigerian celebrity DAVIDO meme coin rug pull fears sparks controversy

• Davido’s $DAVIDO token launch triggers pump-and-dump suspicions.
• Critics cite previous involvement in selling questionable crypto tasks.
• Debate intensifies over the influence of celebrity-backed meme cash.

Nigerian celebrity Davido finds himself embroiled in controversy following the launch of his meme token, $DAVIDO, amidst a broader debate surrounding celebrity-backed meme cash.

The fast rise and subsequent crash within the worth of $DAVIDO have raised suspicions of a pump-and-dump scheme, drawing consideration to the integrity of such ventures within the crypto area.

Davido reportedly pocketed $473K in 11 hours

Davido reportedly reaped substantial earnings, with a staggering $473,000 earned inside a mere 11 hours of the token’s launch.

Preliminary funding particulars reveal that he acquired 7.5 SOL ($1,275) as startup capital and used 7 SOL ($1,190) to create and launch $DAVIDO on Pump.enjoyable, buying 203 million tokens, which accounted for 20.3% of the full provide.

Davido then went forward to promote 121.88 million $DAVIDO tokens for two,791 $SOL($474.4K), making a revenue of about $143K.

Nonetheless, there are fears of a rug pull scheme particularly for the reason that token’s worth has since plummeted by 95%, leaving traders in dismay.

Questionable integrity

Critics have pointed to Davido’s previous involvement in selling tasks with questionable integrity, together with RapDoge, Echoke, and Racksterli, as proof of a sample indicating a profit-driven agenda.

These d-tier celebs you retain supporting largely have already launched or promoted a number of scams prior to now.

EX: Davido promoted RapDoge, Echoke, and Racksterli (huge Nigerian funding ponzi)

Now bc they arrive again and make one submit you suppose this time might be totally different…

— ZachXBT (@zachxbt) Might 30, 2024

This has led to issues inside the crypto group relating to the motives behind celebrity-endorsed tokens, with skeptics questioning their dedication to real innovation and contribution to the ecosystem.

The proliferation of celebrities endorsed meme cash

The $DAVIDO debacle comes amidst a broader dialogue surrounding the proliferation of meme cash endorsed by celebrities.

Whereas some view such initiatives as a method of onboarding new customers to the crypto area, others warning towards blindly supporting token launches, highlighting the potential for market manipulation and investor exploitation.

Latest launches by a number of celebrities have reignited this debate, with opinions divided on the general influence on the crypto trade.

Ansem, a member of the crypto group, emphasizes the significance of partaking with celebrities all in favour of contributing to the area whereas acknowledging the necessity for warning. Nonetheless, voices like ZachXBT warn towards putting undue belief in celebrities, notably these with a historical past of selling scams and fraudulent tasks.

The controversy surrounding Davido’s $DAVIDO token underscores the necessity for higher transparency, accountability, and investor training within the crypto area.

As regulatory scrutiny looms over celebrity-backed tasks, stakeholders are urged to train diligence and discernment when navigating the unstable panorama of meme cash and speculative investments.

Within the meantime, whether or not celebrities like Davido can redeem their reputations and foster real collaboration stays to be seen, as the controversy surrounding their function within the crypto ecosystem continues to evolve.