Monday, 17 June 2024
Trending

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 Pump.fun, 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…

Click Here to Read the Full Original Article at CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison…