Alex Omenye
Nigeria’s Afrobeat superstar, David Adeleke, popularly known as Davido, announced the launch of his cryptocurrency token, “Timeless Davido” ($DAVIDO), on Wednesday.
This memecoin, inspired by the artist himself, joins a growing trend of celebrity-themed tokens in the crypto market.
Davido shared the news on his X handle, with the official Solana account acknowledging the launch. This created a significant buzz in the Nigerian crypto community and led to a sharp increase in the token’s market capitalization shortly after its release.
However, the excitement was short-lived, as the token’s value plummeted the next day.
Here are five key points about the $DAVIDO token:
1. Blockchain and creation: The $DAVIDO token was launched on the Solana blockchain using the Pump Fun platform, which enables users to create tokens quickly. Solana is known for its high transaction speed and low fees, processing over 65,000 transactions per second. One SOL is currently valued at N238,769.
2. Startup capital: According to Lookonchain, a crypto research tool, Davido received 7.5 SOL (approximately $1,275) as startup capital to create the token. He used 7 SOL to purchase 203 million $DAVIDO tokens, representing about 20.3% of the total supply.
3. Initial profit: Davido sold 121.88 million $DAVIDO tokens, earning over $473,000 within 11 hours. He still holds an unrealized profit of $207,000.
4. Value decline: Despite the initial hype, the token’s value dropped by over 93% within a day of its launch. As of Thursday, the token is trading at $0.000010 with a liquidity of $291,000, according to CoinMarketCap.
5. Previous ventures: This is not Davido’s first foray into cryptocurrencies. He previously launched $ECHOKE on the Binance Smart Chain, which aimed to offer various services, including NFTs and entertainment-related products. However, the project was short-lived and is now defunct.
The launch of the $DAVIDO token is part of a broader trend of celebrity-themed cryptocurrencies. While the long-term prospects of these tokens are uncertain, they continue to attract attention in the crypto industry, which has a current market cap of around $66 billion for memecoins.
The future of the $DAVIDO token remains uncertain, especially after its dramatic loss in value, raising questions about its viability for long-term investors.
