Nigerian star, Davido, has sparked controversy over his coin carpet scare
Davido's $DAVIDO token launch has sparked suspicions of pump and dump. Critics cite his past involvement in promoting questionable crypto projects. Debate over the impact of celebrity-backed comic coins rages on.
Nigerian superstar Davido's meme token, $DAVIDO, has found himself embroiled in controversy amid the widespread debate surrounding celebrity-backed meme coins.
The rapid rise and fall in the price of $ DAVIDO raised doubts about the pump and dump scheme, which drew attention to the validity of such operations in the crypto space.
It is reported that Davido pocketed 473 thousand dollars in 11 hours
Davido is reported to have made a staggering $473,000 within 11 hours of the token's launch.
Initial investment details include receiving 7.5 SOL ($1,275) as startup capital and using 7 SOL ($1,190) to create and launch $DAVIDO on Pump.fun, earning 203 million tokens, accounting for 20.3% of the total supply.
Davido then sold $121.88 million worth of DAVIDO tokens for $2,791 SOL ($474.4K), making a profit of $143,000.
However, there are fears of a floor-dragging mechanism, especially since the token's value has dropped by 95%, disappointing investors.
Questionable loyalty
Critics point to Davido's involvement in promoting projects of questionable integrity, including RapDoge, Echoke and Racksterli, as an example of a profit-driven agenda.
These D-level celebrities you support have started or promoted many scams in the past.
Example: Davido introduced Rapdog, Echok and Raxterley (a giant Nigerian investment ponzi).
Now bc they come back and make a post that they think this time will be different…
— ZachXBT (@zachxbt) May 30, 2024
This has raised concerns in the crypto community about the motivations behind celebrity-endorsed tokens, with skeptics questioning their commitment to true innovation and ecosystem contribution.
The rise of popularity has supported meme coins
The $DAVIDO scam comes amid widespread discussion surrounding the proliferation of celebrity-backed meme coins.
Some see such initiatives as a way to get new users on board the crypto space, while others warn against blindly backing token startups, which could be a sign of market manipulation and exploitation of investors.
A number of prominent figures have reignited this debate recently, with opinions divided on its overall impact on the crypto industry.
Ansem, a member of the crypto community, acknowledged the need for caution, stressing the importance of connecting with prominent people interested in contributing to the space. However, voices like ZachXBT warn against placing undue trust in celebrities, especially those with a history of promoting scams and scam projects.
The controversy surrounding Davido's $DAVIDO token highlights the need for more transparency, accountability and investor education in the crypto space.
With regulatory scrutiny looming over celebrity-backed projects, stakeholders are urged to be diligent and prudent when looking at the volatile meme coins and speculative investments.
In the meantime, it remains to be seen whether celebrities like Davido will be able to redeem their reputation and create a true partnership, as the debate about their role in the crypto ecosystem continues to evolve.
