Davido launches $Davido meme crypto token… Here’s what you should know about it
Nigerian musician Davido recently launched a new cryptocurrency token named $DAVIDO, which experienced a dramatic collapse just a day after its introduction.
According to CoinMarketCap, the token’s value plummeted to $0.000010 by Thursday morning, representing a decline of over 93% from its peak on Wednesday.
The sudden drop in value occurred after on-chain data indicated that Davido was cashing out his holdings. Analysis by Lookonchain revealed that Davido had created the meme coin using the Pump.fun platform. He initiated the project with an investment of 7.5 Solana tokens, equivalent to $1,275, and then developed the $DAVIDO token.
Following the creation of the token, Davido purchased 203 million $DAVIDO tokens and proceeded to sell a portion of them, yielding a profit exceeding $473,000. Despite selling some of his holdings, he still had an unrealized profit of over $207,000.
Davido, known for his successful music career, has amassed a significant following on social media, with over 15 million followers on his X account and nearly 4 million subscribers on his YouTube channel.
His hit song “Fall” has garnered more than 285 million views on YouTube over the past six years. Additionally, his 108 videos on YouTube have collectively been streamed over 1.6 billion times.
Celebrity Cryptocurrency Tokens are on the Rise
Davido’s foray into the world of cryptocurrency comes at a time when launching a digital token has become remarkably easy.
Platforms like Pump allow individuals to create their own cryptocurrency in just a few minutes. This simplicity has led to a surge in the creation of cryptocurrencies, but it has also made it easier for scams to proliferate, promoting pump and dump schemes and facilitating wash sales.
Simultaneously, the demand for celebrity-themed tokens has been on the rise.
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According to data from CoinGecko, political coins, also known as PolitiFi, have gained significant traction, with a combined market capitalization of over $1.43 billion.
The largest among them, MAGA, boasts a valuation exceeding $616 million and aims to attract supporters of Donald Trump as his presidential campaign continues.
Other prominent political-themed meme coins include Super Trump, MAGA VP, Baby Trump, and Jeo Boden. These tokens reflect a growing trend of merging political fandom with cryptocurrency investments.
In addition to political coins, meme coins have become a major phenomenon in the crypto industry. Data from CoinMarketCap reveals that the total market capitalization of all meme coins exceeds $66 billion.
This valuation surpasses that of several well-established companies, such as Deutsche Bank, FedEx, Coinbase, Workday, and Monster Beverage.
The popularity and substantial market value of these meme coins underscore their significant impact on the cryptocurrency landscape.
