Davido’s $DAVIDO token launch triggers pump-and-dump suspicions.
Critics cite previous involvement in selling questionable crypto initiatives.
Debate intensifies over the impression of celebrity-backed meme cash.
Nigerian famous person Davido finds himself embroiled in controversy following the launch of his meme token, $DAVIDO, amidst a broader debate surrounding celebrity-backed meme cash.
The speedy rise and subsequent crash within the worth of $DAVIDO have raised suspicions of a pump-and-dump scheme, drawing consideration to the integrity of such ventures within the crypto area.
Davido reportedly pocketed $473K in 11 hours
Davido reportedly reaped substantial income, with a staggering $473,000 earned inside a mere 11 hours of the token’s launch.
Preliminary funding particulars reveal that he obtained 7.5 SOL ($1,275) as startup capital and used 7 SOL ($1,190) to create and launch $DAVIDO on Pump.enjoyable, buying 203 million tokens, which accounted for 20.3% of the whole provide.
Davido then went forward to promote 121.88 million $DAVIDO tokens for two,791 $SOL($474.4K), making a revenue of about $143K.
Nevertheless, there are fears of a rug pull scheme particularly because the token’s worth has since plummeted by 95%, leaving traders in dismay.
Questionable integrity
Critics have pointed to Davido’s previous involvement in selling initiatives with questionable integrity, together with RapDoge, Echoke, and Racksterli, as proof of a sample indicating a profit-driven agenda.
These d-tier celebs you retain supporting largely have already launched or promoted a number of scams previously.
EX: Davido promoted RapDoge, Echoke, and Racksterli (large Nigerian funding ponzi)
Now bc they arrive again and make one publish you suppose this time will likely be completely different…
— ZachXBT (@zachxbt) Might 30, 2024
This has led to considerations throughout the crypto group concerning the motives behind celebrity-endorsed tokens, with skeptics questioning their dedication to real innovation and contribution to the ecosystem.
The proliferation of celebrities endorsed meme cash
The $DAVIDO debacle comes amidst a broader dialogue surrounding the proliferation of meme cash endorsed by celebrities.
Whereas some view such initiatives as a way of onboarding new customers to the crypto area, others warning towards blindly supporting token launches, highlighting the potential for market manipulation and investor exploitation.
Current launches by a number of celebrities have reignited this debate, with opinions divided on the general impression on the crypto trade.
Ansem, a member of the crypto group, emphasizes the significance of participating with celebrities eager about contributing to the area whereas acknowledging the necessity for warning. Nevertheless, voices like ZachXBT warn towards putting undue belief in celebrities, significantly these with a historical past of selling scams and fraudulent initiatives.
The controversy surrounding Davido’s $DAVIDO token underscores the necessity for better transparency, accountability, and investor training within the crypto area.
As regulatory scrutiny looms over celebrity-backed initiatives, stakeholders are urged to train diligence and discernment when navigating the unstable panorama of meme cash and speculative investments.
Within the meantime, whether or not celebrities like Davido can redeem their reputations and foster real collaboration stays to be seen, as the talk surrounding their function within the crypto ecosystem continues to evolve.
