Nigerian superstar DAVIDO meme coin rug pull fears sparks controversy – CoinJournal | CPT PPP Coverage

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• 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.

These d-tier celebs you keep supporting mostly have already launched or promoted multiple scams in the past.

EX: Davido promoted RapDoge, Echoke, and Racksterli (massive Nigerian investment ponzi)

Now bc they come back and make one post you think this time will be different…

— ZachXBT (@zachxbt) May 30, 2024

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 exploitation.

Recent launches by multiple celebrities have reignited this debate, with opinions divided on the overall impact on the crypto industry.

Ansem, a member of the crypto community, emphasizes the importance of engaging with celebrities interested in contributing to the space while acknowledging the need for caution. However, voices like ZachXBT warn against placing undue trust in celebrities, particularly those with a history of promoting scams and fraudulent projects.

The controversy surrounding Davido’s $DAVIDO token underscores the need for greater transparency, accountability, and investor education in the crypto space.

As regulatory scrutiny looms over celebrity-backed projects, stakeholders are urged to exercise diligence and discernment when navigating the volatile landscape of meme coins and speculative investments.

In the meantime, whether celebrities like Davido can redeem their reputations and foster genuine collaboration remains to be seen, as the debate surrounding their role in the crypto ecosystem continues to evolve.