The popular Afrobeat artist from Nigeria, David Adeleke, often known as Davido, announced on Wednesday the creation of a memecoin, a cryptocurrency inspired by himself.
The most recent addition to the recent wave of celebrity-themed memecoins generating headlines in the cryptocurrency market is the token known as “Timeless Davido” ($DAVIDO).
On Wednesday, Davido tweeted about the creation of the $Davido token on his X handle, and the official Solana handle recognized the announcement.
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.
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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
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.
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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.
$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.
