Friday, July 19, 2024
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Davido’s New Meme Token Faces Criticism from Nigerian Crypto Community

Davido has faced criticism from the Nigerian crypto community for potentially preparing to dump his meme token, DAVIDO, after profiting significantly from its initial launch. Blockchain tracking firm Lookonchain reported that Davido made a profit of 2,783 SOL (approximately $473,000) within just 11 hours of the token’s launch by selling part of his stake. The community is concerned about Davido’s large withdrawals from the token supply, which he encouraged his followers to buy into, and the potential repercussions of such actions.

The DAVIDO token was launched on May 29, and Davido’s significant sales occurred shortly thereafter. The controversy and token activities are centered in Nigeria but involve the broader global crypto community due to the digital nature of the transactions.

Davido initially invested a small amount to create and launch the DAVIDO token on the platform pump.fun, buying a significant portion of the total token supply. Following the launch, he sold a large number of tokens at a profit but still holds a substantial amount that represents unrealized gains. His actions have drawn criticism for potentially undermining the credibility of the crypto industry and risking a “pump-and-dump” scenario, which could harm inexperienced investors among his followers.

The incident has sparked broader discussions about celebrity involvement in cryptocurrency ventures, especially in meme tokens, which are often subject to volatile swings and speculative bubbles. Critics argue that celebrities like Davido could use their influence more responsibly by promoting regulatory clarity and support for the crypto industry rather than engaging in activities that might lead to financial losses for less informed investors. This event comes at a time when celebrity-backed digital assets are increasingly under scrutiny, with incidents like Iggy Azalea’s MOTHER token also generating controversy. Such developments highlight the need for greater awareness and possibly regulatory intervention to protect investors in the rapidly evolving crypto market.

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