In response to criticism regarding pump-and-dump schemes and regulatory scrutiny, Davido has not commented.
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The management of Afro-pop artist Davido’s recently released meme token, DAVIDO, has come under fire from the Nigerian cryptocurrency community. Many think that he may soon include a token dump in his plans.
CryptoCaster Quick Check:
Davido sold his DAVIDO memecoin after its launch on May 29 and made a tidy profit of 2,783 SOL ($473,000) in just 11 hours, according to Lookonchain. The singer still possesses $207,000 in unrealized profit.
DAVIDO Memecoin Launch
After receiving 7.5 SOL (worth $1,275) as an initial investment, Davido created and launched his DAVIDO token on the platform pump.fun with 7 SOL ($1,190).203 million DAVIDO tokens, or 20.3% of the total supply, were acquired for enjoyment.👀
He also sent 20 million DAVIDO to “dead1111…1111,” according to the blockchain tracking company, leaving 61.12 million DAVIDO ($207,000) remaining.
Community Response
Davido hasn’t said anything about it, but the cryptocurrency community and his fans have harshly criticized him for taking large amounts of DAVIDO tokens out of his stash while urging people to purchase.
Local cryptocurrency expert Rume Ophi feels that rather than introducing his own token, Davido would have been better served by pushing for exchange licensing and regulatory clarity in Nigeria’s cryptocurrency market.
Davido’s memecoin, according to Ophi, runs the risk of turning into a pump-and-dump scheme that damages industry reputation and draws attention from the SEC.
This action might cause significant financial harm to a large number of followers, many of whom may be novice cryptocurrency users, and increase regulatory pressure on respectable players.
One X user was still upset that Davido and his group were unable to stop the new memecoin from taking off. He claimed that if Davido and his group had managed the launch with greater forethought, they could have made even more money.
The user proposed that instead of selling a sizable portion of the token—nearly $500,000 worth—as soon as it was launched, Davido and his team should have given the new token time to gain traction and appreciate in value.
Another X user, @Toobbss, claims that Davido has a history of giving his fans digital currency in exchange for money; this latest incident is the second time in the previous three years that he has done so, leaving his followers holding the bag.
In 2021, Davido had been promoting RapDoge and then lavished his fans with over $300,000.
Davido’s actions in the cryptocurrency space coincide with the rise in popularity of celebrity meme assets. Recently, Iggy Azalea unveiled MOTHER, her own token.
Nevertheless, there has been controversy surrounding these celebrity-backed cryptocurrency launches, making investors open to possible pump-and-dump schemes that could cause losses.
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