The launch of $Jota Coin by popular skitmaker Chukwuebuka Amuzie, widely known as Brain Jotter, has reportedly ended in disaster, with the cryptocurrency crashing just hours after its debut on September 1. The coin, introduced on The Open Network (TON) blockchain, has left investors reeling amid accusations of “rug pulling,” a practice where developers abruptly withdraw all funds, leaving investors with worthless tokens.
TON, initially developed by the messaging app Telegram, is a blockchain platform designed for decentralized applications (dApps) and services, offering fast transactions, high scalability, and low fees. The native cryptocurrency of the TON blockchain is Toncoin (TON).
The swift collapse of $Jota Coin has sparked outrage online, with many Nigerians calling it another example of a celebrity-backed scam. Social media users and crypto analysts have criticized the project, mocking its rapid failure and warning others of the dangers associated with such ventures.
A post from a crypto analyst known as CryptoPidgin Analyst on X (formerly Twitter) 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 user, Big Huncho, tweeted, “Jeez, Did @brainjotter__ just rugged his Crypto project?”
Amid the backlash, a developer, Malik Olabiyi, emphasized the need for proper regulation in the cryptocurrency space. He urged investors to conduct thorough research before committing to any project, especially those endorsed by celebrities, highlighting the growing number of fraudulent schemes tied to such endorsements.
The JOTA Coin debacle is not an isolated incident. Celebrity endorsements have increasingly been linked to tech investment scams, further complicating the already risky landscape of cryptocurrency investment. Despite the hype generated by these high-profile figures, many investors have suffered significant losses.
A check by YEPS revealed that $Jota Coin is absent from major global crypto platforms like Coin Gecko, Binance, Coin Desk, and Coin Telegraph, raising further concerns about its legitimacy.
This incident is part of a broader trend of failed crypto projects promoted by influential figures, both in Nigeria and globally. Skitmaker Nosa Afolabi, known as Lasisi, and actress Anita Asuoha, popularly known as Real Warri Pikin, were among those who promoted the $Jota Coin, adding to the hype surrounding its launch.
The involvement of celebrities in questionable crypto ventures is not new. Afrobeat star Davido launched a crypto token, $DAVIDO, in May, and was previously linked to the Racksterli Ponzi scheme in 2021. Comedian Oluwadolarz also promoted the Racksterli scheme, which resulted in significant financial losses for many investors.
The rise of technology has brought both genuine crypto advancements and the proliferation of Ponzi schemes masquerading as investment opportunities. While cryptocurrency is touted as a lucrative digital asset, the increasing number of fraudulent schemes highlights the urgent need for greater regulatory scrutiny to protect investors from financial fraud.
