Popular Nigerian singer David Adeleke, better known by his stage name Davido, has ventured into the world of cryptocurrency with the launch of his own memecoin, $DAVIDO, on the Solana blockchain. However, this move has been met with criticism and scepticism from the crypto community, who fear a potential “pump and dump” scheme.
Early Profits and Sell-Off Raise Concerns
According to blockchain data tracker Lookonchain, Davido profited handsomely from the initial launch of his DAVIDO token on May 29th. By selling a portion of his holdings within just 11 hours, he reportedly made a cool $473,000. While this suggests a successful launch, it has also raised concerns about Davido’s long-term commitment to the project. Many in the Nigerian crypto space believe this initial sell-off could be a precursor to a larger “dump” of his remaining tokens, significantly driving down the price and leaving investors with substantial losses.
Initial Investment and Token Creation
Reports indicate that Davido initially invested a modest $1,275 worth of SOL (Solana’s native cryptocurrency) in the project. He then used a further $1,190 worth of SOL to create and launch the DAVIDO token on the pump.fun platform. This process granted him control over a significant portion of the total supply – around 20.3%, represented by 203 million DAVIDO tokens.
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Social Media Promotion and Unanswered Questions
Following the initial launch and sell-off, Davido remained silent for a period, which further fueled speculation about the legitimacy of the project. However, he has since resumed promoting the token on social media, expressing his desire to connect with holders and explore ways to lock tokens (potentially increasing their value). Additionally, he hosted an online event where a select group of users received $100 worth of Solana.
Despite these efforts, the controversy surrounding the launch continues. The Nigerian crypto community remains wary, and many are urging caution to potential investors. The lack of transparency regarding Davido’s long-term plans and the hefty profits earned from the initial sell-off leaves a cloud of doubt over the future of the DAVIDO memecoin.
