African pop star Davido’s handling of his newly launched token, DAVIDO, has drawn criticism from the Nigerian cryptocurrency community. Many believe a symbolic landfill could soon be part of his plans.
According to Lookonchain, Davido made a huge profit of 2,783 soles ($473,000) in just 11 hours by selling the DAVIDO memecoin after its launch on May 29. The singer still has an unrealized profit of $207,000.
Launch of the Davido memecoin
Davido received an initial investment of 7.5 soles (worth $1,275) and then used 7 soles (worth $1,190) to create and launch his DAVIDO token on the Pump.fun platform , where he purchased 203 million DAVIDO tokens, or 20.3% of the total. total the offer.
The blockchain tracking company reported that he also sent 20 million DAVIDO to “dead1111…1111,” with 61.12 million DAVIDO ($207,000 USD) remaining.
The community reacts
Although Davido has remained silent on the issue, his fans and the cryptocurrency community have widely criticized the removal of many of his DAVIDO tokens while encouraging people to buy.
Rom Ovie, a local cryptocurrency expert, believes Davido could have made a more strategic decision by calling for regulatory clarity and exchange licenses in Nigeria’s cryptocurrency space instead of launching his own token.
Davido’s memecoin risks turning into a pump-and-dump scheme, undermining the industry’s credibility and attracting the attention of the SEC, Ovie said.
Cointelegraph reached out to Davido for comment but had no response at the time of publication.
With followers, many of whom may be inexperienced in cryptocurrencies, this move could result in widespread financial damage and increased regulatory pressure on legitimate players.
One X user remained frustrated that Davido and his team could not enable the new memecoin to gain momentum. He said they could have made more money if Davido and his team had managed the launch more strategically.
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The user suggested that Davido and his team could have allowed the new token to gain momentum and increase in value instead of selling a large amount of token (worth around $500,000) immediately after its launch.
According to another losses.
Davido promoted RapDoge in 2021 before scamming his fans out of over $300,000.
Meanwhile, Davido’s entry into the world of cryptocurrencies comes as the celebrity asset gains popularity. Iggy Azalea recently introduced her token, MOTHER.
However, celebrity-backed cryptocurrency launches have sparked controversy, leaving investors vulnerable to possible pump-and-dump schemes, which could lead to financial losses.
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