Nigerian Crypto Critics Wary of Davido Meme Token

Davido has remained silent amid Nigerian crypto critics‘ concern over his newly launched Davido meme token.

The administration of DAVIDO, an Afro-pop meme token recently introduced by Davido, has elicited disapproval from the Nigerian cryptocurrency community. He may shortly be implementing a token dump strategy.

Davido reportedly sold his DAVIDO memecoin for a substantial profit of 2,783 SOL ($473,000) in just eleven hours following its May 29 launch, as reported by Lookonchain. The remaining unrealized profit for the singer is $207,000.

Launch of David’s memecoin

After receiving an initial investment of 7.5 SOL (equivalent to $1,275), Davido utilized 7 SOL ($1,190) to develop and introduce his DAVIDO token on the platform pump—entertainment, acquiring 203 million DAVIDO tokens, which accounts for 20.3% of the overall supply.

Additionally, he transferred 20 million DAVIDO to “dead1111…1111,” according to the blockchain monitoring firm, leaving 61.12 million DAVIDO ($207,000) remaining.

Nigerian Community reacts

His fans and the cryptocurrency community have widely criticized Davido’s withdrawal of considerable amounts from his DAVIDO token stash while encouraging people to purchase, even though he has remained silent.

Local crypto expert Rume Ophi believes Davido could have executed a more strategic maneuver instead of launching his token by advocating for regulatory clarity and exchange licensing in Nigeria’s cryptocurrency space.

Ophi stated that Davido’s memecoin is susceptible to becoming a pump-and-dump scheme, which would damage industry credibility and attract SEC scrutiny.

Davido was not responsive to a request for comment from Cointelegraph as of the publication date.

This action could result in extensive financial damage and heightened regulatory scrutiny on legitimate participants, a significant portion of whom may lack cryptocurrency expertise.

A user of X was further dissatisfied that Davido and his team could not facilitate the emergence of the new memecoin. He stated that a more strategic approach to the launch by Davido and his team could have increased their profits even further.

Instead of selling a substantial token (nearly $500,000 worth) immediately after its introduction, the user suggested that Davido and his team could have supported the token’s growth and momentum.

Davido has a history, according to another X user, @Toobbss, of dumping digital coins on his fans; the recent incident is the second time in the last three years that he has done so, leaving his followers to endure the losses.

Davido advertised RapDoge in 2021 before lavishing his supporters more than $300,000.

Meanwhile, Davido’s forays into the realm of cryptocurrencies coincide with the rise in popularity of celebrity meme assets. Recently, Iggy Azalea unveiled MOTHER, her token.

Nevertheless, celebrity endorsement of these cryptocurrencies has generated considerable discord, exposing investors to the risk of dubious pump-and-dump schemes that may lead to monetary setbacks.