Nigerian Tweeps Mock Davido, Accuse Popular Afrobeat Singer Of Creating Fraudulent Crypto Coin To Fund Wedding
On Friday, June 14, 2024, the Securities and Exchange Commission warned the public against investing in the meme coin linked to Davido.
Some Nigerians have accused Afrobeat singer, David Adedeji Adeleke popularly known as Davido of creating a fraudulent crypto meme coin to fund his wedding.
Last Tuesday, Davido and Chioma Rowland, his long-time partner, held their traditional marriage at Harbour Point Event Centre, Victoria Island, Lagos.
The wedding came a few weeks after the singer launched his meme coin called Timeless Davido with the ticker $DAVIDO, on the Solana blockchain.
The introduction of the coin into the market has sparked a debate within financial circles.
The token gained massive value —up to $10 million in market capitalisation — but lost it just as quickly. it currently has a market cap of $2.2 million as of press time.
Experts have highlighted similarities to historical Ponzi schemes, such as MMM, where millions of investors lost substantial amounts of money.
Analysts argued that such coins often capitalise on the popularity of individuals without strong underlying fundamentals or a clear business model.
According to Lookonchain, an X account that analyses the price movement of crypto tokens, wallets associated with the creation of $DAVIDO sold off the token and made a profit of $473K in 11 hours.
This sell-off caused the value of the token to drop from a $10 million market cap to $2.2 million. This means that people who invested at the peak of the market valuation were burnt.
This sell-off can be considered a scam as it bears a keen resemblance to a rug pull.
According to CoinDesk, a rug pull is “where a developer or creator will promote a project such as a new coin or NFT release and then disappear with investor money”.
“The perpetrators of rug pulls are difficult to track down after the fact, as the decentralized and pseudonymous nature of blockchain allows those involved to conceal their identities,” it said.
“Once the price peaks, the people behind the token sell it to generate a profit while leaving “investors” with steep losses. Rug pulls often occur on decentralized trading platforms, enabling the fraudster to benefit from the pseudonymity of DEXes,” it added.
On Friday, June 14, 2024, the Securities and Exchange Commission warned the public against investing in the meme coin linked to Davido.
SEC issued the warning on its website, cautioning investors that any involvement with the meme coin would be at their own risk.
In essence, the SEC advised investors to exercise extreme caution and be aware that they would be solely responsible for any potential losses.
It said, “The general public is hereby advised that meme coins lack fundamental value and are purely speculative. The general public is further warned that investing in meme coins, including $Davido, is highly risky and should be done with a full understanding of the associated risk.
“Capital market operators are by this notice warned not to associate with instruments that fall outside the SEC’s regulatory purview. Such instruments should not in any manner be distributed or monitored through any capital market mechanism.”
“Please note that the commission does not recognise $Davido as an investment product or investable asset class under its regulatory purview, as such individuals who patronize it, do so at their peril,” the statement added.
Reacting on social media, some Nigerians claimed Davido scammed them to fund his wedding.
A Twitter user, @ArewaAdebukolaa said, “Onijibiti. Man created a fraudulent crypto coins to fund his wedding.”
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Reverse Truth🦅🇬🇧👑 (@Bidal4Life) wrote: “If we don finish with Odanz we go come back to how you scammed us to fund your wedding.
“Use today laugh fess Ejeh.”
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Here are other reactions:
Mr Jay (@Wizard__J) said, “Now that #CHIVIDO2024 has ended, is it safe to say that y’all that bought Davido’s coin contributed to the wedding or should I warm eba?”
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ceeza (@ceeza1048676) wrote, “I think now we all know why Davido rip us with $Davido coin. Baba dey find money for wedding 😂.”
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Star Girl🦅ᴹᴹ (@lil_maamiii) said, “Them nor go gather the marriage money back ke?? Later this week sef Davido go get new meme coin😂😂😂😂 $CHIVIDO coin🥴🥴🥴😂😂😂😂.”
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ARTSY BUM (@Theilemobade) wrote, “Davido sare fi fake coin hustle owo wedding. Omo ogbon 😂😂😂.”
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Similarly, Peter (@holy_seener) wrote, “Davido rip us with hin coin do wedding #yabaleft.”
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Abel Olalere (@Abeltechtips_) said, “#Davido used the money of those who invested in him coin to have a glamorous wedding with #Chioma. #CHIVIDO #CHIVIDO2024.”
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iamjaymax (@Jaymax23885738) wrote, “If you buy Davido meme coin, you should be at his wedding party to enjoy yourself to the fullest. If you end up not going, that’s a loss on two sides. I’m so sorry for you.
“Won’t say more than that. #CHIVIDO2024 #CHIVIDO2024.”
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