Nigerian Singer Davido Cashes Out $470K+ From Dumping $DAVIDO Memecoin

Widely-followed Nigerian singer David Adedeji Adeleke (popularly known as Davido) has made over $470,000 in profits from launching a memecoin on the Solana network. As on-chain data shows, a blockchain address owned by the Afro hip-hop star created a memecoin named $DAVIDO on the launchpad platform Pumpdotfun and spent around 7 SOL (approximately $1,190) to buy the token following its release.

The $DAVIDO memecoin quickly garnered attention, especially after the Nigerian singer shared the project with his fans and friends on social media. However, amid the hype and within 11 hours after launching the project, on-chain data shows that Davido sold 121.88 million DAVIDO tokens for 2,791 SOL (approximately $474,000).

The celebrity singer also burned a portion of the token supply and still holds over $200k worth of DAVIDO, which he may sell later to realize further profits.

Davido(@davido) launched a token named $DAVIDO and made a profit of 2,783 $SOL($473K) in just 11 hours, also has an unrealized profit of $207K.

11 hours ago, he received 7.5 $SOL($1,275) as start-up capital, created $DAVIDO on https://t.co/C909I8882s and spent 7 $SOL($1,190) to… pic.twitter.com/3ObDhsMbOU

— Lookonchain (@lookonchain) May 30, 2024

Should I Buy DAVIDO Memecoin?

Like most cryptocurrencies, whether or not an investor buys the Davido-backed memecoin is a personal decision. However, previous experiences with celebrity-backed cryptocurrencies suggest that the hype around the Davido memecoin may evaporate within a short time and leave investors in losses.

As experienced on-chain forensic ZachXBT was quick to point out, the African music star has promoted certain memecoin projects in the past that eventually crashed in value. Additionally, the singer did not disclose that he may have been paid in cash or kind for such promotions or received other forms of compensation.

The only respite for investors would be considering whether Davido may do more for the memecoin given the direct involvement with his brand and also an official partnership with Solana-based artist-focused platform Drip Haus.

In the end, investors must make their own investment decisions based on the information provided and only invest what they can afford to lose, especially when dealing with memecoins.