Afrobeats mega superstar Davido found himself in quite the cryptocurrency fiasco after Nigeria’s Securities and Exchange Commission (SEC) warned investors about his recently launched $DAVIDO meme coin. 

$DAVIDO was launched on the Solana blockchain on Wednesday, May 29, and racked in about $10 million market capitalisation within four hours. However, what initially appeared to be a promising venture took a dramatic downturn, as the coin’s valuation plummeted by 90% within 24 hours.

Whether this rapid decline resulted from a rug pull—crypto slang for a scam—or an aggressive sell-off strategy, the SEC’s statement on Friday has extinguished any remaining public trust in Davido’s intentions. 

“The Commission does not recognise $Davido as an investment product or investable asset class under its regulatory purview, as such individuals who patronise it do so at their peril.

“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,”  SEC cautioned on their website. 

This latest controversy has unearthed Davido’s previous controversial crypto ventures dating back to 2021.

Davido’s Controversial Crypto History 

Davido’s foray into cryptocurrencies has been marked by a series of ventures, each with its mix of short-lived success and controversy.

His initial project, $echoke, launched in November 2021, sought to offer fans exclusive entertainment experiences but quickly fell into obscurity.

His second venture, Racksterli, became mired in scandal, ultimately revealed as a Ponzi scheme that left many users with substantial financial losses.

While his name draws attention and initial investments, the subsequent fallout raises critical questions about the sustainability and legitimacy of his crypto endeavours. Three misguided ventures can’t simply be dismissed as coincidence. 

Davido’s repeated failed expedition—or perhaps obsession—in the crypto space, coupled with an SEC disclaimer, could seriously dent his reputation as a reliable investment partner.