Davido, the American-born Nigerian singer, has made headlines once again, but this time for his sudden and massive dump of his newly created memecoin, DAVIDO. The singer created the token on May 29 using the popular memecoin launchpad Pump.fun and spent 7 SOL ($1,190) to buy 203 million DAVIDO, representing 20.3% of the total supply.

Massive Dump Hours After Launch

Just 11 hours after creating the memecoin and promoting it on his X social account with 15.3 million followers, Davido offloaded 121.88 million DAVIDO for 2,791 SOL, generating about $474,400 from the sale. The singer then sent 20 million DAVIDO to “dead1111…1111,” leaving 61.12 million DAVIDO (worth about $207K at the time) in his wallet.

Market Reaction

The massive dump didn't go unnoticed for long, and its effect reflected on the market later. Per GeckoTerminal data, DAVIDO is down by over 90% from its highest point on Wednesday. At last check, the memecoin had lost 72.41% in the last six hours to exchange hands at 0.001933, with a market capitalization of $2 million. Users have so far conducted 7,619 transactions with the token, contributing to a trading volume of $171,390, the data shows.

Davido's Promotional Efforts

Despite the massive dump, Davido was still promoting the memecoin on his X account after the development. He encouraged DAVIDO holders to “HODL,” urging them to drive the memecoin's market cap to $30 million. However, the memecoin's market performance has been dismal, with its price plummeting and trading volume decreasing significantly.

Conclusion

Davido's memecoin, DAVIDO, has become a cautionary tale for investors. The singer's massive dump of the token has triggered a sharp price dip, leaving many wondering if the memecoin was always intended to be a short-term play. As the crypto market continues to evolve, it is essential for investors to remain vigilant and do their due diligence before investing in any new token.