Investing In Davido’s Memecoin Is At Owner’s Risk – SEC Tells Nigerians (All To Know About Davido Meme Coin)
The attention of the Securities and Exchange Commission, Nigeria (“SEC”) has been drawn to a meme coin known as “$Davido” allegedly linked to the popular Nigerian singer, David Adedeji Adeleke AKA Davido.
Generally, meme coins are cryptocurrencies inspired by memes and internet jokes. They are often envisaged as a fun, light-hearted cryptocurrencies promoted through a social media community and sometimes through celebrity endorsements. Meme coins are also NOT intended to serve as a medium of exchange accepted by the public as payment for goods and services, or as digital representation of capital market products such as shares, debentures, units of collective investment schemes, derivatives contracts, commodities or other kinds of financial instruments or investments.
The general public is HEREBY ADVISED that meme coins lack fundamental value and are purely speculative. The general public is further WARNED that investing in meme coins, including $Davido, is highly risky and should be done with a full understanding of the associated risk.
Capital Market Operators are by this Notice warned not to associate with instruments that fall outside the SEC’s regulatory purview. Such instruments should not in any manner be distributed or monitored through any capital market mechanism.
PLEASE NOTE that the Commission does not recognize $Davido as an investment product or investable asset class under its regulatory purview, as such individuals who patronize it, do so at their peril.
The Commission will continue to monitor developments within the ecosystem and will not relent in deploying its regulatory powers as and when required.
SIGNED
MANAGEMENT
WHAT TO KNOW ABOUT DAVIDO’S MEME COIN
Nigeria’s Afrobeat superstar, David Adeleke (Davido), on Wednesday 29th May 2024, announced the launch of a crypto token or memecoin inspired by himself.
The token known as “Timeless Davido” ($DAVIDO) is the latest addition to the new wave of celebrity-themed memecoins making the news in the crypto industry at the moment.
Davido announced the launch of the $Davido token on his social media handle on Wednesday and the post was acknowledged by the official Solana handle.
This resulted in a frenzy in the Nigerian social media space and a surge in the market capitalization of the token hours after its launch.
Although the rave around the token has cooled off just a day after its launch, here are five important things to note about the $Davido token.
Launched on Solana blockchain
The $Davido token was launched on the Solana blockchain and it was created on Wednesday using the popular Platform Pump Fun which allows crypto users to create a token in a matter of minutes.
Crypto research tool, Lookonchain, reported that Davido received 7.5 SOL worth $1,275 as startup capital which he used to create the $Davido token.
The Solana blockchain is known for processing over 65,000 transactions in a second and has low fees. 1 Sol is currently worth N238,769
Profit of $473,000 in 11 hours
After creating his $Davido token with his 7.5 SOL initial capital, Davido spent 7 SOL to buy 203 million $Davido tokens which made up about 20.3% of the total supply.
He sold 121.88 million $Davido tokens, making a profit of over $473,000 in just 11 hours. He still has an unrealized profit of $207,000.
Davido token value has plunged by 93%
Despite the excitement and the rave created online by the launch of the $Davido tokens, the party was short-lived as the memecoin lost over 93% of its value by the next day.
The token is currently down by 93% from its highest point on Wednesday. According to data from CoinMarketCap, the coin is currently trading at $0.000010 just a day after its launch. The coin also has a current liquidity of $291,000.
Not Davido’s first crypto project
$Davido token launch is not the first time the Afrobeat superstar has got involved in the wild world of cryptocurrencies.
Techcabal reported that the superstar previously launched $echoke on the Binance Smart Chain to provide a host of services, including non-fungible tokens, entertainment, media, and hospitality. The project was short-lived and was long forgotten.
The journey for the newly launched $Davido token remains uncertain for long-term holders of the token given the unsavory news of the coin losing 93% of its value the next day.
What to know
The $Davido memecoin is the latest addition to the recent wave of celebrity-themed tokens in the crypto industry. It remains uncertain the long-term trajectory of the $Davido token and whether it would be able to increase its valuation allowing its long-term holders to profit from it.
Memecoins are increasingly becoming a very important part of the crypto industry with an overall market cap of about $66 billion.
Nairametrics earlier reported the top five promising memecoins of 2024 who are currently increasing in valuation and pulling a bullish trend in the crypto market.
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