Afro-pop star Davido is facing backlash from the Nigerian crypto community following the rapid profit-making and subsequent concerns surrounding his DAVIDO memecoin. The token, launched on May 29, quickly earned Davido a profit of 2,783 SOL, equivalent to $473,000, within just 11 hours.
Community and Expert Reactions
Blockchain tracking firm Lookonchain reported that Davido initially invested 7.5 SOL, using 7 SOL to create and launch the DAVIDO token on the platform pump.fun. He acquired 203 million tokens, representing 20.3% of the total supply, and subsequently transferred 20 million DAVIDO tokens to an inactive wallet. Currently, Davido holds 61.12 million DAVIDO tokens, amounting to an unrealized profit of $207,000.
Davido(@davido) launched a token named $DAVIDO and made a profit of 2,783 $SOL($473K) in just 11 hours, also has an unrealized profit of $207K.
11 hours ago, he received 7.5 $SOL($1,275) as start-up capital, created $DAVIDO on https://t.co/C909I8882s and spent 7 $SOL($1,190) to… pic.twitter.com/3ObDhsMbOU
— Lookonchain (@lookonchain) May 30, 2024
Local crypto expert Rume Ophi criticized Davido’s actions, suggesting that a more strategic approach would involve advocating for regulatory clarity and exchange licensing within Nigeria’s crypto sector. Ophi also warned that Davido’s rapid sell-off could turn the memecoin into a pump-and-dump scheme, potentially damaging industry credibility and drawing scrutiny from the SEC.
Despite the criticism, Davido has not responded to the backlash. His silence is notable as his followers, many of whom might lack experience in cryptocurrency, are at risk of financial loss. This situation underscores the broader issue of celebrity-endorsed cryptocurrencies and the potential risks they pose to uninformed investors.
These events are part of a broader trend of celebrity meme assets gaining traction, as seen with public figures like Iggy Azalea and her token, MOTHER. The rise of these celebrity-driven cryptocurrencies continues to spark controversy and debate regarding their long-term viability and ethical implications.
