Popular Nigerian Musician Davido Accused of Cryptocurrency Manipulation
Popular Nigerian musician Davido has found himself at the center of a scandal involving cryptocurrency manipulation. His new token, DAVIDO, experienced a sharp price increase of 200% after launch, but within just an hour, its value dropped by 56%. These events have raised suspicions of pump and dump scheme organization.
The Allegations and Controversy
According to reports, the DAVIDO token was introduced on May 29 on the Pump.fun platform. Davido, leveraging his influence and numerous social media accounts, actively promoted the token to his followers. However, after a brief price surge, the musician sold 121.88 million tokens and made around $474,000, having purchased them earlier for 7 SOL tokens. This move left investors with devalued assets and sparked outrage.
This is not the first time Davido has been suspected of cryptocurrency manipulation. In July 2021, he also endorsed the Rapdoge token, which soon after promotion lost a significant portion of its value. A similar situation occurred with the Racksterli token, which met the same fate.
Reactions from the Crypto Community
The situation with the DAVIDO token has drawn criticism from Nigerian crypto enthusiasts. Rume Ofi, a well-known cryptocurrency educator, strongly condemned the musician’s actions, labeling them as fraudulent. Ofi warned investors that Davido’s behavior aligns with the standard rug pull scheme, where token creators profit while investors are left with devalued assets.
This incident highlights the risks associated with investing in cryptocurrency assets promoted by famous personalities, and calls into question the ethics of their behavior in the crypto industry.
