Investors into the newly launched crypto-currency by popular skit maker, Chukwuebuka Amuzie, also known as Brain Jotter, have begun to count their losses after the $Jota Coin suddenly crashed.
The Nigerians, who were lured into the investment by the skit maker’s popularity and his colleagues’ endorsement have expressed concern that the promises made before their investment had all fizzled out.
As gathered, the coin crashed on Monday, hours after its debut on the TON network, a blockchain platform originally developed by the messaging app, Telegram.
This failure has led to widespread accusations of “rug pulling,” where developers abruptly withdraw all funds, leaving investors with worthless tokens.
It was learnt that rug pulling indicated that developers, after attracting investors to buy their coin at a high value, abruptly withdraw all funds midway, reducing the value.
Before their investment, many celebrities endorsed the coin, which resulted in a sudden surge in the crypto value and attracted investors to the financial source.
While these high-profile figures bring attention to their endorsed projects, they expose unsuspecting investors to scams and rug pulls.
Meanwhile, financial experts have warned Nigerians against investing in cryptocurrency without the Central Bank of Nigeria (CBN) and the Nigerian Stock Exchange endorsement, saying it ends in fraud.
Earlier, a 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.
