The launch of $Jota Coin by popular skitmaker Chukwuebuka Amuzie, popularly known as Brain Jotter, has reportedly ended in disaster.
There are indications of the coin crashing just hours after its September 1 debut on the TON network.
TON or The Open Network, is a blockchain platform originally developed by the messaging app Telegram.
It was designed to support decentralized applications (dApps) and services with fast transactions, high scalability, and low fees. The native cryptocurrency of the TON blockchain is called Toncoin (TON).
This failure has led to widespread accusations of “rug pulling,” where developers abruptly withdraw all funds, leaving investors with worthless tokens.
Celebrity endorsements are increasingly linked to a surge in crypto scams and rug pulls.
While these high-profile figures bring attention to their endorsed projects, they also expose unsuspecting investors to significant risks.
The recent collapse of JOTA Coin has sparked strong reactions online, with many Nigerians tagging it as yet another example of a celebrity-backed scam.
Traders and social media users react
Crypto analysts and social media users have been quick to criticize the project, mocking its rapid failure and warning others about the dangers of such ventures.
PUNCH Online reveals how Nigerian celebrities are increasingly entangled in tech investment scams, whether as creators or endorsers of dubious schemes, further complicating the already risky landscape of cryptocurrency investment.
A crypto analyst, CryptoPidgin Analyst, with the account #Cryptopidgin3, in a post on X, mocked the launched crypto scheme, which he said had already collapsed.
The post read, “The $Jotter coin no even last 2hrs Davido own even last 3days. Another sign to let u know say we don dey bear market back.”
Another X user, Big Huncho, with the user name #Hunchodrixx, said, “Jeez Did@brainjotter__ just rugged his Crypto project?”
Crypto ChiefPriest with the handle #CryptoCPriest, in his post tweeted, “Is this the JOTA coin launched my @brainjotter__ Everyone was so hyped about or is my eye deceiving me? You all never learn.
A developer, Malik Olabiyi, in a chat with PUNCH Online on Monday said there is a need for proper regulation.
“As interest in cryptocurrency grows, investors are urged to conduct thorough research before committing funds to any project, regardless of celebrity involvement. The rise in fraudulent schemes tied to celebrity endorsements underscores the need for greater regulatory scrutiny in the crypto space,” he said.
Some opined that it is a form of rug pulling.
Rug pulling in the crypto space involves developers abruptly withdrawing all funds, leaving investors with worthless tokens. This practice has, at times, been associated with celebrities either knowingly or unknowingly endorsing such projects.
Investors are advised to conduct thorough research before investing in any cryptocurrency, regardless of its celebrity endorsements. As interest in crypto grows, there is a push for greater regulatory scrutiny to protect against financial fraud.
Meanwhile, a check run by PUNCH Online revealed that the JOTA coin is nowhere to be found.
The rise of technology has led to both genuine crypto advancements and the proliferation of Ponzi schemes masquerading as investment opportunities. While cryptocurrency is touted as a lucrative digital asset, it has also seen a disturbing increase in fraudulent schemes targeting unsuspecting investors.
Meanwhile, some of the comedian’s colleagues had earlier taken to social media to promote the coin launch.
In an August 31 X post, made by a Defi Analyst and Degen Trader, 0𝖝𝕽𝖊𝖌𝖚𝖑𝖆𝖗♕ with the username, #CryptoHome_, the one-minute seven-second video had several celebrities, influencers, and even actors promoting the coin.
Skit maker Nosa Afolabi, popularly known as Lasisi, promoted Brain Jotter’s $Jota token, generating hype with a video saying, “$Jota coin September first.”
Nasiru Lawal, known as Nasboi, endorsed the $Jota token, announcing its launch with a video: “Finally launching $Jota coin, hey guys it’s official.”
In her own words, actress, Anita Asuoha popularly known as Real Warri Pikin, said, “Normal JC now jota coin, Sept first.”
Brain Jotter’s $Jota token, launched on the TON network, resulted in significant losses for investors shortly after its debut.
In recent years, thousands of Nigerians have fallen prey to the devious antics of money-doubling platforms, popularly known as Ponzi schemes.
There have been varying failed crypto projects promoted by influential figures in Nigeria and even globally.
Meanwhile, a check by our correspondent revealed that the coin, $Jota—though unverified—has an X presence with the handle #coinjota.
The Afrobeat sensation, Adeleke David, popularly known as Davido, launched a crypto token, $DAVIDO, in May.
Davido also invited users to the crypto community with several statements shared on X.com.
“Join the community $DAVIDO! More spaces coming soon and you’ll be excited by who we got coming up next! @davidotoken_sol” he said.
He was also linked to a Ponzi scheme investment, Racksterli in 2021, where he endorsed Nigerians to join the community with video recordings shared on his social media handles and deleted later.
“I wanna introduce you guys to one of the biggest investment platforms in Nigeria.
“There are a lot of opportunities over there… It has been very very [sic] reliable for the past six months. We’ve had great recommendations.”
The afrobeat star launched the $DAVIDO token in May and promoted it on social media, inviting users to join the community. He was also linked to Racksterli, a Ponzi scheme he endorsed in 2021, which he later removed from his social media accounts.
Another comedian, Oluwadolarz Ogunleye Babatunde Olamide promoted the Racksterli Ponzi scheme in 2021, leading to substantial financial losses for many investors.
