Monday, 17 June 2024

Crypto News

Nigerian superstar DAVIDO meme coin rug pull fears sparks controversy

Nigerian superstar DAVIDO meme coin rug pull fears

  • Davido’s $DAVIDO token launch triggers pump-and-dump suspicions.
  • Critics cite past involvement in promoting questionable crypto projects.
  • Debate intensifies over the impact of celebrity-backed meme coins.

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

The rapid rise and subsequent crash in the value of $DAVIDO have raised suspicions of a pump-and-dump scheme, drawing attention to the integrity of such ventures in the crypto space.

Davido reportedly pocketed $473K in 11 hours

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

Initial investment details reveal that he received 7.5 SOL ($1,275) as startup capital and used 7 SOL ($1,190) to create and launch $DAVIDO on, acquiring 203 million tokens, which accounted for 20.3% of the total supply.

Davido then went ahead to sell 121.88 million $DAVIDO tokens for 2,791 $SOL($474.4K), making a profit of about $143K.

However, there are fears of a rug pull scheme especially since the token’s value has since plummeted by 95%, leaving investors in dismay.

Questionable integrity

Critics have pointed to Davido’s past involvement in promoting projects with questionable integrity, including RapDoge, Echoke, and Racksterli, as evidence of a pattern indicating a profit-driven agenda.

This has led to concerns within the crypto community regarding the motives behind celebrity-endorsed tokens, with skeptics questioning their commitment to genuine innovation and contribution to the ecosystem.

The proliferation of celebrities endorsed meme coins

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

While some view such initiatives as a means of onboarding new users to the crypto space, others caution against blindly supporting token launches, highlighting the potential for market manipulation and investor…

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