The Nigerian cryptocurrency community has criticized Afro-pop superstar Davido’s new memecoin, with many believing it may be a token dump strategy.
Lookonchain reports that eleven hours after the May 29 inauguration of the DAVIDO memecoin, Davido sold it for a substantial profit of 2,783 SOL ($473,000). The remaining unrealized profit for the singer is $207,000.
Davido’s Memecoin
After receiving an initial investment of 7.5 SOL (equivalent to $1,275), Davido utilized 7 SOL ($1,190) to develop and introduce his DAVIDO token on the platform pump.entertainment, acquiring 203 million DAVIDO tokens, which account for 20.3% of the overall supply.
Additionally, he transferred 20 million DAVIDO to “dead1111…1111,” according to the blockchain monitoring firm, leaving 61.12 million DAVIDO ($207,000) remaining.
Crypto Community Responds
His fans and the cryptocurrency community have widely criticized Davido’s withdrawal of considerable amounts from his DAVIDO token stash while encouraging people to purchase, although he has remained silent.
Local crypto expert Rume Ophi believes Davido could have executed a more strategic maneuver instead of launching his token by advocating for regulatory clarity and exchange licensing in Nigeria’s cryptocurrency space.
Ophi stated that Davido’s memecoin is susceptible to becoming a pump-and-dump scheme, which would damage industry credibility and attract SEC scrutiny.
This action could result in extensive financial damage and heightened regulatory scrutiny on legitimate participants, a significant portion of whom may lack cryptocurrency expertise.
A user of X was further dissatisfied that Davido and his team could not facilitate the emergence of the new memecoin. He stated that a more strategic approach to the launch by Davido and his team could have increased their profits even further.
Instead of selling a substantial token (nearly $500,000 worth) immediately after its introduction, the user suggested that Davido and his team could have supported the token’s growth and momentum.
Davido has a history, according to another X user, @Toobbss, of dumping digital coins on his fans; the recent incident is the second time in the last three years that he has done so, leaving his followers to endure the losses.
Davido advertised RapDoge in 2021 before lavishing his supporters more than $300,000.
Meanwhile, Davido’s forays into the realm of cryptocurrencies coincide with the rise in popularity of celebrity meme assets. Recently, Iggy Azalea unveiled MOTHER, her token.
Nevertheless, celebrity endorsement of these cryptocurrencies has generated considerable discord, exposing investors to the risk of dubious pump-and-dump schemes that may lead to monetary setbacks.
