On Wednesday, Nigeria’s Afrobeat artist David Adeleke (Davido) announced the launch of a cryptocurrency token or memecoin inspired by himself.
The “Timeless Davido” ($DAVIDO) token is the latest addition to the new wave of celebrity-themed memecoins that are making headlines in the crypto business right now.
On Wednesday, Davido announced the introduction of the $Davido token using his X handle, and the official Solana handle acknowledged the Twitter.
This resulted in a frenzy in the Nigerian X space and a surge in the market capitalization of the token hours after its launch.
Although the rave around the token has cooled off just a day after its launch, here are five important things to note about the $Davido token.
Launched on Solana blockchain
The $Davido token was launched on the Solana blockchain and it was created on Wednesday using the popular Platform Pump Fun which allows crypto users to create a token in a matter of minutes.
Crypto research tool, Lookonchain, reported that Davido received 7.5 SOL worth $1,275 as startup capital which he used to create the $Davido token.
The Solana blockchain is known for processing over 65,000 transactions in a second and has low fees. 1 Sol is currently worth N238,769
Profit of $473,000 in 11 hours
After creating his $Davido token with his 7.5 SOL initial capital, Davido spent 7 SOL to buy 203 million $Davido tokens which made up about 20.3% of the total supply.
He sold 121.88 million $Davido tokens, making a profit of over $473,000 in just 11 hours. He still has an unrealized profit of $207,000.
$Davido token value has plunged by 93%
Despite the excitement and the rave created online by the launch of the $Davido tokens, the party was short-lived as the memecoin lost over 93% of its value by the next day.
The token is currently down by 93% from its highest point on Wednesday. According to data from CoinMarketCap, the coin is currently trading at $0.000010 just a day after its launch. The coin also has a current liquidity of $291,000.
Not Davido’s first crypto project
$Davido token launch is not the first time the Afrobeat superstar has got involved in the wild world of cryptocurrencies.
Techcabal reported that the superstar previously launched $echoke on the Binance Smart Chain to provide a host of services, including non-fungible tokens, entertainment, media, and hospitality. The project was short-lived and was long forgotten.
The journey for the newly launched $Davido token remains uncertain for long-term holders of the token given the unsavory news of the coin losing 93% of its value the next day.
What to know
- The $Davido memecoin is the latest addition to the recent wave of celebrity-themed tokens in the crypto industry. It remains uncertain the long-term trajectory of the $Davido token and whether it would be able to increase its valuation allowing its long-term holders to profit from it.
- Memecoins are increasingly becoming a very important part of the crypto industry with an overall market cap of about $66 billion.
- Nairametrics earlier reported the top five promising memecoins of 2024 who are currently increasing in valuation and pulling a bullish trend in the crypto market.