Telecom
Davido’s ‘$Davido’ Meme Coin Is A ‘Crypto Scam’ Buy at Your Peril – Rume Ophi Warns
One of Nigeria’s foremost crypto-evangelists and prominent voices in the cryptocurrency space has come out swinging against Afrobeats superstar Davido’s recent launch of the $DAVIDO meme coin, accusing the musician of perpetrating an outright “crypto scam” that could severely damage the nation’s burgeoning crypto industry.
Rume Ophi, widely known as the “Cryptopreacher” for his pioneering work in crypto education across Africa, did not mince words in his scathing critique of Davido’s meme token.
The coin, launched May 29th on the Solana blockchain, saw a meteoric rise soon after its release, with its market capitalization surging past $10 million within 24 hours as Davido’s 15 million social media followers piled in.
However, in the 8 hours that followed, over 80% of that value had been 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.
According to Lookonchain, Davido created the token on May 29 using the popular memecoin launchpad Pump.fun. The singer received 7.5 SOL ($1,275) as start-up capital and spent 7 SOL ($1,190) to buy 203 million DAVIDO (20.3% of the total supply.) 11 hours after creating the memecoin and promoting it on his X social account with 15.3 million followers, Davido offloaded 121.88 million DAVIDO for 2,791 SOL, generating about $474,400 from the sale.
“If you bought the $DAVIDO meme coin expecting to cash out profits, I’m here to tell you that you were outright scammed by Davido himself. This is textbook behavior for a crypto rug pull scam,” Rume who is also an analyst on Channel TV and other media platforms warns.
Ophi argues that Davido’s quick exit from his own token launch, pocketing over $140,000 while leaving his fanbase holding the bag, constitutes a brazen iteration of this scheme.
“One of the earliest, brightest red flags of any crypto scam is when the creators themselves are the first ones running for the exit after briefly pumping the price,” Ophi cautioned.
“It’s a predatory cycle as old as snake oil – use hype to arouse investor FOMO, cash out huge while replacing fundamentals with empty promises, then leave the buyers holding a worthless asset.”
Beyond the financial damage to those who bought in, the Cryptopreacher expressed grave concerns about the potential reputational fallout that Davido’s actions could have on Nigeria’s crypto landscape. With the nation angling to become a continental leader in blockchain innovation, high-profile debacles like this could sow further distrust and regulatory hurdles.
“If it’s discovered that U.S. investors were impacted by this blatant attempt to issue unregistered securities, you can be certain the SEC’s crosshairs will be zeroing in on Davido,” Ophi warned.
“And any resulting crackdown will create huge stress for the many legitimate businesses and startups operating in good faith across our crypto markets.”
He also criticized the Nigerian Securities and Exchange Commission directly for failing to proactively protect citizens from such schemes, urging the regulator to establish clear policies and licensing for cryptocurrency projects looking to solicit investment from the public.
Rather than pursuing ill-conceived meme coins that Ophi derides as essentially ponzi schemes, the crypto educator implored Davido to realign his ambitions and leverage his stardom in more sustainable blockchain verticals like NFTs.
This, Ophi argues, could drive real utility and value creation instead of inflicting widespread financial harm on legions of poorly-educated retail investors.
“With 15 million followers, many of whom have zero understanding of crypto basics, Davido’s actions are poised to result in very real, widespread financial damage,” stated Ophi solemnly.
“He should be partnering with the SEC and our crypto community to focus on developing legitimate NFT products and services that contribute positively to this industry’s growth rather than detract from it.”
Lebara Nigeria is building excitement for its upcoming Mobile Virtual Network Operator (MVNO) launch, giving customers a chance to secure a personalized piece of their mobile identity.
The company has opened a Number Reservation Portal, allowing users to reserve their preferred mobile numbers before the official service goes live in the third quarter of 2025.
This strategic move is all about giving customers a sense of ownership from day one. Using the carrier’s 0724 prefix, users can choose a number that’s meaningful to them, whether it’s a birthday, a lucky number, or an easy-to-remember pattern.
The reservation process is straightforward. Users must be at least 13 years old and provide a few basic details to get a one-time password via email.
Once verified, they’ll need to enter their National Identification Number (NIN), which the system uses to confirm personal information.
After this, a list of available numbers appears, and a final confirmation email completes the reservation.
Lebara, a London-based global MVNO, according to yozzo.com, is no stranger to the telecom world, with a strong presence as a mobile virtual network operator (MVNO) across Europe and other regions.
Its entry into Nigeria is a calculated move to carve out a space in the highly competitive market.
By allowing customers to pick their numbers early, Lebara hopes to build loyalty and highlight its customer-first philosophy.
The company plans to operate a lean, technology-driven model by leveraging existing network infrastructure, which will help keep costs low and make its pricing competitive.
At launch, Lebara will offer nationwide coverage, a dedicated 0724 number series, and both SIM and eSIM options.
Beyond traditional connectivity, Lebara is also partnering with local government and the Ministry of Arts, Culture, Tourism, and Creative Economy to launch public Wi-Fi hubs and promote digital inclusion for creators and underserved communities.
The core of its proposition is affordability, transparent billing, and a strong customer service model designed to challenge established players.
Lebara’s entry won’t be without its challenges.
It will face off against many other competitors in Nigeria’s emerging MVNO space.
This wave of new entrants comes after the Nigerian Communications Commission (NCC) issued 46 MVNO licenses, with many of the licensees expected to have already launched.
Despite this, the local media’s focus has largely been on only a couple of them, Vitel and now Lebara.
Telecoms stakeholders have cautioned that many Mobile Virtual Network Operators (MVNOs) in Nigeria could struggle to survive unless they address infrastructure gaps, target niche markets, and adapt to local realities.
The warning came during the sixth edition of the Telecoms Sector Sustainability Forum, organised by Business Remarks in Lagos on Tuesday.
According to the stakeholders, securing a license from the Nigerian Communications Commission (NCC) is not enough to ensure survival in a market dominated by major Mobile Network Operators (MNOs) like MTN, Airtel, and Glo.
Chidi Ajuzie, director of USK Mobile, highlighted the stark reality facing MVNOs, noting that none of the over 40 licensed operators have fully launched services.
“Licenses are not cash cows. Too many people think that once you get a license, the money will start rolling in. The truth is, you must build infrastructure, study the market, and create services that meet consumer needs. Without that, many MVNOs will die out quickly,” Ajuzie said.
Ajuzie pointed out that smaller operators, particularly those in Tier 4 and Tier 5 categories, face significant financial hurdles in building their own infrastructure to support capacity.
However, he sees this as an opportunity for innovation, urging MVNOs to target niche markets such as youth, migrant workers, or fintech services, as seen in successful models in South Africa and India.
“Half of us may launch, but only those with clear strategies will survive,” he warned, predicting mergers and consolidations in the coming years.
Tony Emoekpere, president of the Association of Telecommunications Companies of Nigeria (ATCON), echoed Ajuzie’s concerns, stressing that market differentiation is critical for MVNO survival.
“The MNOs already provide enterprise services, internet, and fintech. MVNOs must find gaps and focus on those,” Emoekpere said.
He cited Kenya’s M-Pesa, which revolutionized payments by targeting rural and low-income users, as a model for local innovation.
Emoekpere suggested that MVNOs could capitalize on Nigeria’s underserved rural areas, where millions lack access to reliable telecom and financial services. “Something as simple as a low-data package for POS machines in rural areas could be a game-changer,” he added.
Olusola Teniola, director, IPNX, cautioned against adopting foreign business models without considering Nigeria’s unique environment. “In some villages, people still travel by canoe or horse for hours to access basic services. If your business model doesn’t account for that, it will fail,” Teniola said.
He urged MVNOs to focus on the bottom of the pyramid, where millions lack basic connectivity, rather than competing for urban smartphone users.
Teniola also warned that failure to strengthen indigenous companies could lead to more profits leaving Nigeria through foreign-owned operators, emphasizing the need for policies to protect data sovereignty and foster local innovation.
The stakeholders said while MVNOs have the potential to expand Nigeria’s telecom sector and increase consumer choice, their survival hinges on strategic planning, niche targeting, and a focus on rural connectivity.
Without urgent action to address infrastructure challenges and adapt to local needs, many MVNOs risk disappearing before they can establish a foothold in Nigeria’s competitive telecom landscape.
Nigerian Communications Commission (NCC) has defended the recent upward review of telecom tariffs, insisting that Nigeria’s rates remain among the cheapest in the world due to strong industry competition.
Speaking at a media briefing in Abuja recently, Dr. Aminu Maida, executive vice chairman, NCC, said that despite a 50% hike in tariffs, call rates have only moved from ₦15 per minute in the early 2000s to about ₦18–₦19 per minute today.
“Even with the increase, not all operators adjusted their tariffs. Some are still undercutting others. That is competition at work,” Maida explained.
He assured that the commission will continue to strengthen regulations to encourage competitiveness and transparency.
According to him, NCC is adopting an information disclosure strategy to enable consumers to make informed choices.
Maida also cautioned Nigerians against relying on Truecaller for identity verification, stressing that it is not linked to Nigeria’s SIM registration database and often provides misleading results.
He noted that while all SIMs in use are registered, some individuals deliberately use proxies, including domestic staff, to register SIMs an act he described as a crime.
The NCC boss disclosed that in September, the commission will launch a coverage and tariff map to help subscribers compare network quality and pricing across operators.
He further revealed plans for spectrum trades and leases to optimise usage and improve service delivery, adding that most Nigerian phones already support 4G, which remains the “sweet spot” for mobile broadband.
Maida emphasised the need for fresh capital and stronger corporate governance within the sector to sustain growth, enhance service quality, and strengthen national security.
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