Solana Welcomes $DAVIDO, But Its Valuation Dips

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By Thursday morning, $Davido's value had plummeted by 90%...

In his third foray into the world of cryptocurrency, renowned Afrobeats artist Davido lent his support to "Timeless Davido," a crypto token known as $DAVIDO, on Wednesday evening.

While the exact purpose of the token remained unclear, with its potential uses seemingly tied to an undisclosed website and Telegram group, it was launched on the Solana blockchain and quickly gained attention amidst the sea of obscure crypto tokens.

Solana's official Twitter account welcomed Davido on Wednesday evening, stating, "Solana just ships. Welcome Davido," as $Davido swiftly reached a market capitalization of $10 million within four hours of its launch.

The trajectory seemed promising, especially with the Grammy Award nominee endorsing the coin through multiple tweets. However, the excitement was short-lived.

By Thursday morning, $Davido's value had plummeted by 90%, and according to DEX screener, the coin's liquidity stood at $291,000 at the time of this report.

This is not the singer's first venture into the world of cryptocurrency. In November 2021, he introduced $echoke on the Binance Smart Chain, aiming to provide access to giveaways, NFTs, festivals, exclusive merchandise, and other entertainment, media, and hospitality benefits. Unfortunately, the project was short-lived and soon faded into obscurity.

Davido also faced criticism for promoting Racksterli, a Ponzi scheme that allegedly defrauded users of ₦1 billion, on YouTube. This sparked backlash and calls for a more responsible use of his influential status.

With $Davido, coin holders are now grappling with the possibility that they may have fallen victim to a rug pull, a situation where project developers abandon the endeavor and abscond with all the invested funds.

"Davido should not be associated with this kind of negative publicity. Whatever profits he may have gained from it are not worth it," remarked a crypto expert to TechCabal. Davido's management has yet to respond to requests for comments.

While many individuals who purchased the coin were aware that it was not a long-term project, they anticipated its value to rise and provide them with a profit. However, achieving such an outcome would have required a different set of circumstances.