Tap, Tap, Tap, and all Nigerians are tapping their phone, and one person that does not want to miss out is Davido.

The Afrobeats superstar launched a meme coin on May 29, 2024.

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Tagged to be an outright “crypto scam” many claimed the coin could severely damage the nation’s burgeoning crypto industry.

$Davido meme coin
$Davido meme coin

A few weeks ago, he took to the X app to announce the launch of the self-named meme coin.

He has over 15 million followers.

Immediately, it surged its market capitalisation past $10 million within 24 hours.

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What Really Happened?

Unfortunately, the investors’ excitement was short-lived in the eight hours that followed as over 80% of that value was wiped out, with the meme coin’s market cap plummeting to just $2.1 million amidst a massive selloff.

According to crypto data outlet DailyCoin, records show that Davido himself extracted a staggering $474,000 from the token during this period before cutting ties entirely.

Is The $Davido Meme Coin A Crypto Rug Pull Scam?

From all indications, the $Davido meme coin holders fell for a crypto rug pull scheme as it seems that the project developer has abandoned the coin. This is after pulling out $474,000 in investor funds and pulling out from the scheme.

Indeed, it is not the first time Davido has been involved in what looks like a crypto scam. In November 2021, he launched $echoke on Binance which was short-lived.

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Also, he promoted the Racksterli Ponzi scheme which defrauded users of over 1 billion Naira.

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