The Nigerian crypto community has expressed concerns over Afro-pop star Davido's newly launched meme token, DAVIDO, citing potential pump-and-dump scheme risks. Despite making a substantial profit of $473,000 in just 11 hours after the token's launch, Davido has remained silent on the issue. The community is worried about the potential financial harm to inexperienced investors and increased regulatory pressure on legitimate players.

Davido's memecoin launch has been met with skepticism, with many questioning his motives and the legitimacy of the project. The singer had received an initial investment of 7.5 SOL (worth $1,275) and then used 7 SOL ($1,190) to create and launch his DAVIDO token on the platform pump.fun, purchasing 203 million DAVIDO tokens, representing 20.3% of the total supply. He then sold a significant amount of his tokens, making a considerable profit, which has raised eyebrows in the crypto community.

Local crypto expert Rume Ophi believes that Davido could have made a more strategic move by advocating for regulatory clarity and exchange licensing in Nigeria's crypto space rather than launching his own token. Ophi stated that Davido's memecoin risks becoming a pump-and-dump scheme, undermining industry credibility and sparking SEC scrutiny. "It's crucial for influencers like Davido to prioritize transparency and accountability in their crypto ventures, especially when dealing with inexperienced investors," Ophi emphasized.

The controversy surrounding Davido's memecoin launch highlights the need for regulatory clarity and guidelines in the crypto space. The lack of clear regulations and guidelines can lead to such controversies, which can undermine the credibility of the industry as a whole. It is essential for regulators and industry players to work together to establish clear guidelines and regulations that protect investors and promote innovation in the space.

Furthermore, the Nigerian crypto community has expressed concerns over the potential consequences of Davido's memecoin launch. "If left unchecked, this could lead to a wave of similar pump-and-dump schemes, damaging the reputation of the crypto industry in Nigeria and beyond," warned a local crypto enthusiast. "We urge Davido and other influencers to prioritize responsible innovation and transparency in their crypto ventures."

The controversy surrounding Davido's memecoin launch serves as a reminder of the need for regulatory clarity and guidelines in the crypto space. The Nigerian crypto community's concerns highlight the potential risks of pump-and-dump schemes and the importance of responsible innovation in the industry. As the crypto space continues to evolve, it is crucial for regulators, industry players, and influencers to prioritize transparency, accountability, and innovation to promote a safe and secure environment for investors.