$DAVIDO, the new crypto token by Nigerian musician Davido has imploded, a day after launch. Data by CoinMarketCap shows that the token was trading at $0.000010 on Thursday morning, down by over 93% from its highest point on Wednesday.
This plunge happened after on-chain data revealed that Davido was cashing out. According to Lookonchain, Davido created the meme coin using the popular platform known as Pump.fun. He received 7.5 Solana tokens worth $1,275 and created his $DAVIDO token.
He then bought 203 million DAVIDO tokens and sold some of them, making a profit of over $473k. He was sitting on an unrealized profit of over $207k.
Davido, a Nigerian musician, has become one of the most successful artists globally. His X account has over 15 million followers while his YouTube channel has almost 4 million subscribers. Fall, his most successful song has attracted over 285 million YouTube viewers in the past six years. His 108 YouTube videos have had over 1.6 billion streams.
Celebrity crypto tokens on the rise
Davido’s move into crypto comes at a time when it has become easy to launch a cryptocurrency. One can launch a digital token using the Pump platform within just a few minutes. This trend has made it easier for people to launch scams, promote pump and dump, and facilitate wash sales.
At the same time, demand for celebrity-themed tokens has been rising recently. Data by CoinGecko shows that political coins or PolitiFi have a market cap of over $1.43 billion. MAGA, the biggest one of them, has a valuation of over $616 million. It seeks to attract Donald Trump’s fans as the presidential campaign continues.
The other top political-themed meme coins are the likes of Super Trump, MAGA VP, Baby Trump, and Jeo Boden.
Meanwhile, meme coins have become highly popular in the crypto industry. CoinMarketCap data shows that all meme coins have a market cap of over $66 billion. That makes them bigger than some well-known companies like Deutsche Bank, FedEx, Coinbase, Workday, and Monster Beverage.
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