$Jota Coin by popular skitmaker Chukwuebuka Amuzie, popularly known as Brain Jotter has crashed hours after launch.
According to Punch, the coin crashed 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 decentralised 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.
Crypto analysts and social media users have been quick to criticise the project, mocking its rapid failure and warning others about the dangers of such ventures.
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 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.