The highly anticipated launch of $Jota Coin, spearheaded by popular skitmaker Chukwuebuka Amuzie, better known as Brain Jotter, has ended in disaster. The coin, which debuted on the TON network on September 1, 2024, experienced a dramatic collapse just hours after its launch, leading to widespread accusations of a “rug pull.”
TON, or The Open Network, is a blockchain platform originally developed by the messaging app Telegram. It is designed to support decentralized applications (dApps) and services with fast transactions, high scalability, and low fees. The network’s native cryptocurrency is Toncoin (TON).
The rapid failure of $Jota Coin has sparked a flurry of online reactions, with many Nigerian users labeling it as another example of a celebrity-backed scam. The term “rug pull” refers to a situation where developers abruptly withdraw all funds from a project, leaving investors with worthless tokens. This practice has become increasingly associated with cryptocurrency projects endorsed by celebrities.
### Social Media and Market Reactions
Crypto analysts and social media users have been quick to criticize the failed project. On X (formerly Twitter), the #Cryptopidgin3 account mocked the short-lived nature of the coin, stating, “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 user, #Hunchodrixx, questioned Brain Jotter’s involvement, asking, “Jeez Did@brainjotter__ just rugged his Crypto project?”
Crypto analyst #CryptoCPriest expressed disbelief and frustration, tweeting, “Is this the JOTA coin launched by @brainjotter__ Everyone was so hyped about or is my eye deceiving me? You all never learn. ????????????????????????????????????????????”
Developer Malik Olabiyi, in a conversation with PUNCH Online, highlighted the need for more regulation in the cryptocurrency space. “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.
### The Celebrity Connection
The launch of $Jota Coin was heavily promoted by several celebrities, which initially generated significant hype. Skit maker Nosa Afolabi, also known as Lasisi, shared a video promoting the coin, and Nasiru Lawal, known as Nasboi, announced its launch with an enthusiastic video. Actress Anita Asuoha, popularly known as Real Warri Pikin, also endorsed the coin.
Despite these high-profile endorsements, the coin’s value plummeted soon after its release. A check of popular global crypto communities like Coin Gecko, Binance, Coin Desk, and Coin Telegraph revealed that $Jota Coin is no longer listed or verified on these platforms.
### Historical Context and Future Implications
This incident follows a troubling trend of cryptocurrency projects tied to celebrities collapsing shortly after launch. Notably, Afrobeat sensation Davido launched his own crypto token, $DAVIDO, in May 2024, and was previously linked to a Ponzi scheme called Racksterli in 2021. Such events highlight the risks associated with celebrity-endorsed crypto ventures and emphasize the importance of due diligence.
As cryptocurrency continues to attract attention, the need for regulatory oversight becomes increasingly apparent. Investors are advised to exercise caution and conduct thorough research before investing in any cryptocurrency, especially those promoted by celebrities. The rise of fraudulent schemes underscores the urgency for greater scrutiny to protect investors from financial fraud.
Discussion about this post