Crypto danger and tips for investors as Davido meme coin crash ova 90%

Davido meme coin crashes over 90 percent

In a world wia digital currencies dey rapidly reshape di financial landscape, celebrities and influencers don dey jump on di bandwagon, hoping to capitalise on di hype.

Nigerian music superstar Davido recently join dis trend on Wednesday, 29 May, as e launch im own meme coin, $Davido. However, wetin start as exciting venture quickly turn into gbege for many investors wey don lose moni as di value of di coin crash ova 90 percent.

Cryptocurrencies don captivate di imagination of millions worldwide, as e promise decentralised finance, rapid returns, and a revolutionary alternative to traditional banking.

Bitcoin and Ethereum don become household names, as dem spark surge of interest in various digital assets.

Davido launch im meme coin on di Solana blockchain and di platform also welcome di artiste via dia official Twitter account.

Di ogbonge artiste endorse di coins wit many tweets afta as di value begin go up bifor eventually crash ova 90 percent.

Some pipo wey buy Davido meme coin and lose moni dey suspect rug and pull.

Wetin be meme coin?

Meme coin, unlike im more established coins, dey based on internet jokes and memes. Dis coin fit experience ogbonge price swing wey online communities and social media buzz dey drive.

Dogecoin, wey dem initially bin create as joke, see im value skyrocket sake of endorsements from figures like Elon Musk. Inspired by such success stories, many meme coins don come out, though many lack di fundamental value to sustain long-term growth.

Rug and pull phenomenon

Rug and pull na scam wia developers abandon a project and run away wit investors moni afta dem create and hype di price. Dis fraudulent practice don dey veri common for crypto world, wia di lack of regulation dey create fertile ground for deception.

For 2021 alone, rug and pull bin account for billions of dollars in losses for unsuspecting investors.

Wetin you gatz do bifor you invest in any coin

Dis tips na some of di tins wey cryptocurrency investors gatz do bifor dem invest for any coin.

Research am well well: Understand di fundamentals of di cryptocurrency. Read di project whitepaper, assess di goals, technology, and use case.

Evaluate the team: Investigate di background of di development team and advisers. Look for transparency, experience, and previous successes for di blockchain or related fields.

Check di community and ecosystem: Strong community support fit be good indicator of a project potential. Join forums, social media groups, and follow discussions to see community sentiment.

Review di roadmap: Examine di project roadmap to see if e get clear milestones and realistic timelines. Check if di team don meet previous targets.

Assess market position: Look di coin market capitalisation, trading volume, and liquidity. Higher market cap and volume fit indicate stability and lower risk of price manipulation.

Understand di technology: Dive into di technology behind di coin. Ensure e offer somtin unique or solve specific problem beta dan im competitors.

Evaluate use cases and adoption: Find out if di coin get real-world applications and partnerships. Coin wit practical use cases and adoption dey more likely to succeed.

Understand di risks: Recognise di volatility of di crypto market and dey prepared for potential losses. Only invest wetin you fit afford to lose and consider diversifying your portfolio to spread risk.