Davido Receives Backlash for Launching DAVIDO Meme Token

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Nigerian cryptocurrency enthusiasts have criticized popular Afro-pop artist Davido for his management of the recently released meme token, DAVIDO. Some have raised concerns about the possibility of a pump-and-dump scheme associated with the token.

Based on Lookonchain, it has been reported that Davido made a substantial profit of 2,783 SOL (equivalent to $473,000) in just 11 hours by selling his recently launched DAVIDO memecoin. Although he earned this profit, he continues to hold an unrealized profit of $207,000.

Davido’s Memecoin Launch

Based on reports, Davido was given an initial funding of 7.5 SOL, equivalent to $1,275, and utilized 7 SOL ($1,190) to establish and introduce his own cryptocurrency, the DAVIDO token, on pump.fun. He acquired 203 million DAVIDO tokens, which accounts for 20.3% of the complete token supply.

The news mentioned that Davido transferred 20 million DAVIDO tokens to an unidentified location, while retaining 61.12 million DAVIDO tokens ($207,000).

Community Response

Davido has received backlash from his supporters and the cryptocurrency community for withdrawing large sums from his stash of DAVIDO tokens while also promoting their purchase without addressing the matter.

The crypto community is worried that Davido’s memecoin, according to local expert Rume Ophi, may be seen as a pump-and-dump scheme. This could harm the industry’s image and invite regulatory investigation.

Cointelegraph tried to contact Davido for a statement, but did not receive a reply when this was published.

Davido’s actions may have adverse effects on his followers, particularly those who are new to using cryptocurrencies. This could also result in stricter regulations for legitimate participants in the cryptocurrency market.

A member of the community publicly called out Davido for not giving the new memecoin a chance to thrive before selling a significant portion of it right after its launch. This is not the first instance of Davido being accused of unloading digital currency onto his followers, as he allegedly did with RapDoge last year.

The launch of cryptocurrency supported by celebrities has sparked controversy, as investors may be at risk of pump-and-dump schemes that could lead to financial losses.

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