- Davido’s $DAVIDO token launch raises pump-and-dump suspicions.
- Critics cite its past involvement in promoting questionable cryptocurrency projects.
- The debate over the impact of celebrity-sponsored meme coins is raging.
Nigerian superstar Davido has become embroiled in controversy after launching his own meme token, $DAVIDO, amid widespread controversy surrounding celebrity-backed meme coins.
The rapid rise in the value of $DAVIDO and subsequent collapse raised suspicions about pump-and-dump schemes and drew attention to the integrity of these ventures in the cryptocurrency space.
Davido reportedly pocketed $473,000 in 11 hours.
Davido reportedly made significant profits after the token was launched, earning a whopping $473,000 in just 11 hours.
According to his initial investment, he received 7.5 SOL ($1,275) in startup capital and used 7 SOL ($1,190) to create and launch $DAVIDO on Pump.fun, 203 million tokens, equivalent to 20.3% of the total supply. was found to have been obtained.
Davido then sold 121.88 million $DAVIDO tokens for 2,791 $SOL ($474.4K), making a profit of approximately $143,000.
However, there are concerns about the rug-pull plan, especially since the token’s value plummeted 95%, sending investors into a panic.
questionable integrity
Critics have pointed to Davido’s past involvement in promoting projects of questionable integrity, including RapDoge, Echoke, and Racksterli, as evidence of a pattern indicative of a profit-driven agenda.
These D-tier celebrities that you continue to support have already started or promoted scams several times in the past.
Example: Davido promoted RapDoge, Echoke and Racksterli (large investment Ponzis in Nigeria).
Now they’re back and I’m writing a post about what I think will be different this time…
— ZachXBT (@zachxbt) May 30, 2024
This has left the cryptocurrency community concerned about the motivations behind celebrity-endorsed tokens, while skeptics have questioned their commitment to genuine innovation and contribution to the ecosystem.
Proliferation of celebrity-endorsed meme coins
The $DAVIDO incident comes amid widespread discussion surrounding the proliferation of celebrity-endorsed meme coins.
While some see these initiatives as a means of onboarding new users to the cryptocurrency world, others warn against blindly supporting token launches, highlighting the potential for market manipulation and investor exploitation.
Several recent high-profile launches have reignited this debate, dividing opinions about its overall impact on the cryptocurrency industry.
As a member of the cryptocurrency community, Ansem acknowledges the need for caution and emphasizes the importance of engaging with celebrities who are interested in contributing to the cryptocurrency space. But voices like ZachXBT warn against placing too much trust in celebrities, especially those with a history of promoting scams and fraudulent projects.
The controversy surrounding Davido’s $DAVIDO token highlights the need for greater transparency, accountability, and investor education in the cryptocurrency industry.
As regulatory scrutiny of celebrity-backed projects looms, stakeholders must exercise diligence and discretion when navigating the volatile environment of meme coins and speculative investments.
Meanwhile, it remains to be seen whether celebrities like Davido can redeem their reputations and foster genuine collaboration, as the debate surrounding their role in the cryptocurrency ecosystem continues to evolve.