Nigeria's Afrobeat superstar, David Adeleke (Davido), on Wednesday 29th May 2024, announced the launch of a crypto token or memecoin inspired by himself.

The token known as “Timeless Davido” ($DAVIDO) is the latest addition to the new wave of celebrity-themed memecoins making the news in the crypto industry at the moment.

Davido announced the launch of the $Davido token on his social media handle on Wednesday and the post was acknowledged by the official Solana handle.

This resulted in a frenzy in the Nigerian social media 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.

Last updated on July 1st, 2024 at 06:01 am