Brain Jotter’s $Jota Coin Crashes Hours After Launch, Sparks Accusations of Rug Pulling

The much-anticipated launch of $Jota Coin, created by popular Nigerian skitmaker Chukwuebuka Amuzie, widely known as Brain Jotter, has ended in controversy just hours after its debut. The cryptocurrency, which was launched on September 1 on The Open Network (TON), reportedly crashed soon after its release, leading to widespread accusations of a potential “rug pull.”

A “rug pull” is a term in the cryptocurrency world where developers suddenly withdraw all funds from a project, leaving investors with worthless tokens. This incident has added to the growing concerns about celebrity-endorsed cryptocurrencies, which have increasingly been linked to such scams.

TON, the blockchain platform on which $Jota Coin was launched, is known for supporting decentralized applications and services, promising fast transactions, high scalability, and low fees. However, the sudden collapse of $Jota Coin has led to severe criticism from the cryptocurrency community and investors, many of whom believe they have fallen victim to another celebrity-backed scam.

Reactions from Traders and Social Media Users

The failure of $Jota Coin has sparked strong reactions online. Crypto analysts and social media users have not hesitated to criticize the project, with many mocking its rapid demise and warning others to be cautious of similar ventures.

One prominent crypto analyst, known as CryptoPidgin Analyst, commented on X (formerly Twitter), “The $Jotter coin didn’t even last two hours. Davido’s coin lasted three days. This is a sign that we are back in a bear market.” Other users expressed similar sentiments, questioning Brain Jotter’s involvement and the legitimacy of the project.

Calls for Regulation and Investor Caution

The incident has once again highlighted the risks associated with celebrity endorsements in the cryptocurrency space. A developer, Malik Olabiyi, emphasized the need for proper regulation in the crypto industry, urging investors to conduct thorough research before committing to any project, regardless of celebrity involvement.

“As the popularity of cryptocurrency grows, so does the need for greater regulatory scrutiny to protect investors from financial fraud,” Olabiyi stated in an interview.

Checks revealed that $Jota Coin is not listed on major global crypto platforms such as CoinGecko, Binance, CoinDesk, or CoinTelegraph, raising further questions about its credibility.

Celebrity Influence and the Rise of Crypto Scams

This is not the first time Nigerian celebrities have been linked to dubious cryptocurrency projects. In 2021, Afrobeat star Davido launched a crypto token, $DAVIDO, which was later linked to a Ponzi scheme. Similarly, comedian Oluwadolarz promoted the Racksterli Ponzi scheme, leading to substantial losses for many investors.

The proliferation of Ponzi schemes and fraudulent investment opportunities masquerading as genuine crypto advancements has become a significant issue, particularly in Nigeria, where thousands have fallen victim to these scams. The collapse of $Jota Coin is just the latest example in a growing trend that underscores the need for caution and regulatory intervention in the crypto space.