As a researcher with experience in the cryptocurrency space, I find it deeply concerning to see yet another celebrity fall victim to a rug pull scheme. In this case, Nigerian singer Davido’s foray into the world of memecoins has left his followers and investors with heavy losses.
Nigerian musician Davido is the latest high-profile figure implicated in a rug-pull scheme orchestrated by Sahil Arora, an Indian individual who has been linked to several previous pump-and-dump scams.
Having amassed a fan base of over 15.3 million people on X and boasting 7.9 million monthly listeners on Spotify, the singer unveiled a memecoin named “DAVIDO” on May 29. The reveal was accompanied by the tagline: “The price surge halts when time stands still.”
Solana summer don start ⏳✨
— Davido (@davido) May 29, 2024
Based on information from blockchain explorer Lookonchain, it appears that the memecoin project DAVIDO was initiated on the widely-used Solana platform, pump.fun. Upon its inception, DAVIDO’s token address received a starting investment of 7.5 SOL.
As a crypto investor, I received 7 Solana (SOL) tokens in a recent transfer. To make use of this newfound wealth, I decided to purchase 203 million worth of DAVIDO tokens with it. This represents a significant investment, accounting for approximately 20.3% of the total supply of DAVIDO tokens in circulation.
As an analyst, I observed the singer publicly endorsing the token on platform X. He strongly encouraged his fans to invest in DAVIDO, expressing confidence that the token’s market capitalization would surpass $30 million.
HODL HODL ! WE ARE JUST STARTING! 30 MILLION SOON COME 🔥⏳✨
— Davido (@davido) May 29, 2024
I analyzed the singer’s transaction records, and eleven hours ago, they sold a staggering amount of DAVIDO tokens for 2,791 SOL, which was equivalent to around $474,000 at that moment. However, it is important to note that the value of $SOL had plummeted over 90% from its all-time high of $0.003297, which was recorded just a few days prior on Wednesday.
As a researcher, I’d note that when the article was released, the DAVIDO token price stood at $0.002343 on the market, marking a 37% decrease from its peak value. Additionally, Lookonchain reported the movement of a significant quantity, specifically 20 million tokens, to an address labeled as “dead1111…1111.”
The sudden drop in price has sparked worries that the Nigerian musician may have manipulated the market for a fraudulent exit, an allegation he has yet to refute.
This week, celebrity-themed investment tokens have gained significant attention, with multiple occurrences of these assets being suddenly sold off, leaving investors who sought profit from a quick deal in a predicament.
As an analyst, I’d rephrase it as follows: When American media figure Caitlyn Jenner introduced her new SOL-based meme coin, JENNER, on pump.fun, I was excitedly following the development. But unfortunately, just hours after its launch, the token’s price took a nosedive when it was revealed that developers had sold off significant amounts of their previously acquired tokens.
I later discovered that Sahyl Arora, who was allegedly a scam artist, had orchestrated the incident. Taking advantage of my limited understanding of the crypto market, he manipulatively filled the role of intermediary to pocket profits from the token sale.
As a researcher investigating this case, I’ve uncovered that the same individual, identified as Sahil, managed to swindle more than $300,000 in a token presale using the false pretense of Australian musician Iggy Azalea endorsing the project. The coin, named IGGY, experienced an astonishing increase of over 30,000% but ultimately turned out to be a classic pump-and-dump scheme. At the time of publication, the token had plummeted by over 70% from its May 29 peak.
An American rap artist, Rich the Kid, has made allegations against Arora for illegally using his X account to publicize a fraudulent digital currency named “RICH,” misrepresenting it as endorsed by him.
It’s intriguing to note that, according to a Magazine report, Arora was known to distribute a list of celebrities, claiming he had the ability to arrange promotions for them.
A crypto exchange listings manager disclosed a list with celebrities’ endorsement fees ranging between $6,000 and $315,000. Notable figures such as Justin Bieber, Kim Kardashian, and Lindsay Lohan were included in the fee schedule.
Davido was similarly mentioned, with a tag of $8000 attached. The link between Arora and this episode heightens the speculation that she might have been involved in the recent deception surrounding Davido’s meme currency.
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2024-05-30 14:03