Afro-pop star Davido has come under fire from the Nigerian crypto community following the swift profit-making and subsequent concerns over his DAVIDO memecoin. Launched on May 29, the token quickly netted Davido a profit of 2,783 SOL, equivalent to $473,000, within 11 hours. 
Community and Expert Reactions 
Blockchain tracking firm Lookonchain reported that after receiving an initial 7.5 SOL investment, Davido used 7 SOL to create and launch the DAVIDO token on the platform pump.fun.&nbsp; 
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 Davido(<a href="https://twitter.com/davido?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">@davido</a>) launched a token named <a href="https://twitter.com/search?q=%24DAVIDO&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">$DAVIDO</a> and made a profit of 2,783 <a href="https://twitter.com/search?q=%24SOL&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">$SOL</a>($473K) in just 11 hours, also has an unrealized profit of $207K. 11 hours ago, he received 7.5 <a href="https://twitter.com/search?q=%24SOL&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">$SOL</a>($1,275) as start-up capital, created <a href="https://twitter.com/search?q=%24DAVIDO&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">$DAVIDO</a> on <a href="https://t.co/C909I8882s" target="_blank">https://t.co/C909I8882s</a> and spent 7 <a href="https://twitter.com/search?q=%24SOL&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener">$SOL</a>($1,190) to… <a href="https://t.co/3ObDhsMbOU" target="_blank">pic.twitter.com/3ObDhsMbOU</a>— Lookonchain (@lookonchain) <a href="https://twitter.com/lookonchain/status/1796017849179468116?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">May 30, 2024</a>
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He purchased 203 million tokens, amounting to 20.3% of the total supply, and later transferred 20 million DAVIDO tokens to an inactive wallet address. Davido still holds 61.12 million DAVIDO tokens, equating to an unrealized profit of $207,000. 
Local crypto expert Rume Ophi criticized Davido’s approach, suggesting that a more strategic move would involve advocating for regulatory clarity and exchange licensing in Nigeria’s crypto space.&nbsp; 
Ophi also <a href="https://www.linkedin.com/posts/rume-ophi-252a3aa4_my-take-on-the-davido-meme-token-davido-activity-7201880415236681730-oxc0/?utm_source=share&amp;utm_medium=member_android" target="_blank" rel="noreferrer noopener nofollow">warned</a> that Davido’s rapid sell-off risks turning the memecoin into a pump-and-dump scheme, potentially undermining industry credibility and attracting scrutiny from the SEC. 
Despite these criticisms, Davino has not yet responded to the backlash. His silent stance comes as his followers, many of whom may lack experience in cryptocurrency, face the risk of financial loss. This situation highlights the broader issue of celebrity-endorsed cryptocurrencies and the potential pitfalls they pose to uninformed investors. 
These developments occur as the celebrity meme asset trend gains momentum, illustrated by similar moves from public figures like Iggy Azalea with her token, MOTHER. The rise of these celebrity-driven cryptocurrencies continues to stir controversy and debate over their long-term viability and ethical implications. 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 Also Read: <a href="https://www.cryptotimes.io/2024/05/27/maga-memecoin-trader-scores-2-7m-profit-after-trumps-crypto-support/" target="_blank" rel="noreferrer noopener">MAGA Memecoin Trader Scores $2.7M Profit After Trump’s Crypto Support</a> 
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Davido Faces Criticism Over Rapid Memecoin Profits

The Crypto Times

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