Davido, who has more than 15.3 million followers on Instagram and 7.9 million monthly listeners on Spotify, decided to enter this market by launching “memecoin”, a frequently encountered application in the cryptocurrency market, on May 29. The slogan used when this memecoin, named “DAVIDO”, was launched was quite striking: “When time stops, the rise also stops.”

However, what kind of game was going on behind this slogan became clear in a short time after the launch. According to findings by blockchain tracking platform Lookonchain, DAVIDO was launched through the popular Solana memecoin maker pump.fun. After the launch, 7.5 SOL was transferred to the token address as initial capital. The interesting part of this transfer was the sequel. 7 of the 7.5 SOL transferred were used to purchase 203 million DAVIDO, which is 20.3% of the total supply.

This move caught the attention of investors who were skeptical about the market. Because, immediately after a cryptocurrency is launched, a significant portion of the total supply is purchased by its founders, a move frequently encountered in fraudulent operations called “rug pull”.

Following the launch, Davido began promoting the token by mobilizing his followers on his Instagram account. He encouraged his followers to hold DAVIDO, saying he expects the token to reach a market cap of $30 million. This move further increased the concerns of investors who were already skeptical.

After this move by Davido, things got even more out of hand. Just 11 hours after the launch, it was revealed that the singer sold 121.88 million DAVIDO for 2,791 SOL, which was approximately $474,000 at the time. This sale led to a sharp drop in the token price. DAVIDO, which was traded at an all-time high of $0.003297 on Wednesday, lost over 90% of its value after Davido’s sale.

Lookonchain also detected a transfer of 20 million DAVIDO tokens to an address identified as “dead1111…1111”. The purpose of this transfer is not yet clear.

These events raised the question of whether a “rug pull” operation was organized by Davido in the cryptocurrency market. The singer has not yet made any statement on the subject.

Although Davido’s role in this incident and whether he has a connection with Sahil Arora is not yet known, what happened has once again revealed how sensitive and risky the cryptocurrency market is. This incident emphasizes that investors, especially those new to the cryptocurrency market, should be more careful and do detailed research before investing.