Peter Smith
Davido quickly capitalizes on his new memecoin, DAVIDO, making $474.4K shortly after its launch, raising questions about the token's sustainability.
Davido's Swift Profits from DAVIDO Token Sale
American-born Nigerian singer Davido has swiftly capitalized on his newly launched memecoin, DAVIDO, by pocketing $474.4K just hours after its debut on Wednesday. This significant profit-taking move came shortly after promoting the token on his social media.
Davido launched the DAVIDO token on May 29 using the memecoin launchpad Pump.fun. He received 7.5 SOL ($1,275) as start-up capital and spent 7 SOL ($1,190) to acquire 203 million DAVIDO tokens, amounting to 20.3% of the total supply. Within 11 hours of the token's creation and promotion to his 15.3 million followers on X (formerly Twitter), Davido sold 121.88 million DAVIDO for 2,791 SOL, netting approximately $474,400.
Impact on DAVIDO Token's Market Performance
Following the substantial sell-off, Davido sent 20 million DAVIDO tokens to a burn address ("dead1111…1111"), leaving him with 61.12 million DAVIDO, valued at about $207K at the time. This large dump had a noticeable impact on the market. GeckoTerminal data revealed that DAVIDO's value plummeted by over 90% from its peak on Wednesday. As of the last check, the token had lost 72.41% in the previous six hours, trading at $0.001933 with a market capitalization of $2 million.
Despite the market downturn, Davido continued to promote the memecoin on his X account, urging holders to "HODL" and encouraging them to aim for a $30 million market cap. The token has seen 7,619 transactions, contributing to a trading volume of $171,390.
Conclusion
While Davido's quick profits from the DAVIDO token have drawn attention, the significant drop in value raises questions about the token's long-term sustainability. The singer's continued promotion and calls for holding the token aim to stabilize its market performance, but the future of DAVIDO remains uncertain as investors evaluate its potential amidst the volatile memecoin landscape.
Peter Smith
