Last Monday, Nigerian music star Davido Adeleke joined the growing list of celebrities venturing into the world of cryptocurrency by launching a memecoin on the Solana blockchain.

The memecoin, dubbed $Davido, initially experienced a significant surge, with its market capitalization soaring to $10 million at launch. However, the value swiftly plummeted to $2 million due to profit-taking actions by the contract address associated with the star. This abrupt decline has sparked concerns and raised suspicions that the memecoin might be part of a pump-and-dump scheme.

As a U.S. citizen, Davido Adeleke could potentially face penalties from the U.S. Securities and Exchange Commission (SEC) for violating securities laws.

The Solana meme mania of 2024 is drawing parallels to the Ethereum meme mania of 2021, highlighting the recurring pitfalls and lessons that remain unheeded.

The current frenzy underscores the importance of regulatory awareness and the inherent volatility within the memecoin market, serving as a cautionary tale for both celebrities and investors.