Nigerian music icon Davido is embroiled in controversy, facing accusations of masterminding a cryptocurrency scam through the sale of his newly launched meme coin. The allegations suggest that Davido profited over $468,000 from the token sale, sparking outrage and concern within the cryptocurrency community. Critics argue that his actions undermine the credibility of numerous legitimate cryptocurrency startups and businesses striving to operate ethically.
Accusations of Cryptocurrency Market Manipulation
Davido is accused of engaging in a classic pump-and-dump scheme with his meme coin. The token saw a dramatic 200% surge in value, followed by a steep 56% decline within less than an hour. Reports indicate that Davido acquired 203 million DAVIDO tokens (20.3% of the total supply) using seven SOL tokens. He subsequently sold 121.88 million of these tokens, earning approximately 2,791 SOL, which is about $474,000. The token was launched on May 29 via the meme currency platform Pump.fun, with Davido aggressively promoting it before offloading his holdings on May 30.
Davido’s Controversial Crypto Endorsements
This incident is not the first time Davido has been linked to questionable cryptocurrency promotions. In July 2021, he endorsed the deflationary token RapDoge, which experienced a temporary 100% increase in value before crashing back to pre-promotion levels. Prior to that, Davido supported Racksterli, another token that similarly ended in disappointment for investors.
Industry Reaction to Davido’s Alleged Crypto Scam
The cryptocurrency community has reacted strongly to the allegations against Davido. Rume Ophi, a prominent cryptocurrency and blockchain expert, condemned Davido’s actions as a “blatant fraud.” Ophi warned that Davido’s followers who invested in the token were likely victims of a classic rug pull scam.
“If you bought the $DAVIDO meme coin expecting to profit, you were scammed by Davido himself,” stated Ophi, also known as the CryptoPreacher. “This is textbook behavior for a crypto rug pull scam.”
Ophi further suggested that Davido could face scrutiny from US authorities if American investors were affected by the scam. He emphasized that incidents like this tarnish the reputation of the entire cryptocurrency industry, making it challenging for genuine businesses and startups to thrive.
Current Developments: Davido’s Vacation Amid Controversy
Amid the unfolding controversy, a South African online magazine reported that Davido is currently vacationing in Cape Town. The publication also shared photos of him touring the city, adding another layer to the ongoing saga.
Conclusion: The Impact of Celebrity-Endorsed Cryptocurrencies
The allegations against Davido highlight serious concerns about the integrity of celebrity-endorsed cryptocurrencies. This incident underscores the urgent need for increased transparency and investor protection in the cryptocurrency market. As the situation develops, the industry will be keenly observing any legal actions taken and the broader implications for the crypto landscape.
