On the heels of its debut, the $DAVIDO crypto token, spearheaded by the renowned artist Davido, experienced a sharp downturn, plummeting to $0.000010 on Thursday morning, marking a staggering 93% decline from its peak value the day before, as reported by CoinMarketCap.
The precipitous drop in value ensued following revelations of Davido’s divestment. Lookonchain disclosed that Davido leveraged the Pump.fun platform to establish the $DAVIDO meme coin. In exchange for creating the coin, he received 7.5 Solana tokens, equivalent to approximately $1,275. Subsequently, he acquired 203 million $DAVIDO tokens and capitalized on some, accruing profits exceeding $473,000, while retaining an unrealized profit upwards of $207,000.
Davido commands a substantial following as a leading Nigerian musician, boasting over 15 million followers on X and nearly 4 million YouTube subscribers. Notably, his track “Fall” has garnered over 285 million views on YouTube within six years, while his assorted YouTube videos have collectively amassed in excess of 1.6 billion views.
This event underscores the accessibility of launching digital tokens, facilitated by platforms like Pump.fun, which enable swift cryptocurrency creation, yet have concurrently prompted a surge in fraudulent activities and pump-and-dump schemes. Moreover, the proliferation of celebrity-themed tokens is evident, with political meme coins alone amassing a collective market capitalization surpassing $678 million, the largest among them being MAGA, valued at over $616 million, according to CoinMarketCap data.
Meme coins have gained widespread traction within the realm of cryptocurrency, with an aggregate market capitalization exceeding $66 billion, surpassing the market worth of major entities such as Deutsche Bank, FedEx, Coinbase, Workday, and Monster Beverage.
