Key Points
- Following Messi, Ronaldinho promotes Water Coin on Instagram.
- However, while it rose by 40%, the coin dropped below its pre-pump price.
- Water Coin seeks to raise awareness about water-related issues.
- Potential pump-and-dump schemes have raised concerns.
On the 9th of July, Ronaldinho Gaucho a Brazilian football legend posted an Instagram story that featured a mascot of Water Coin (WATER) to his following of 76.6 million people. This promotion came immediately after Lionel Messi had endorsed it on his X account leading to much enthusiasm for the token.
Water Coin is a meme coin based on Solana that aims to support water-related projects such as sustainable development initiatives, African deforestation prevention, and water distribution.
Some information from its official site highlights that it’s committed towards these causes making it be seen as a charitable or eco-conscious cryptocurrency.
Ronaldinho joins Messi in promoting water-themed Solana memecoin https://t.co/IQRrcIBGkJ pic.twitter.com/UiVBoHuD4l
— CFD.net.au (@CFD_net_au) July 10, 2024
Market Reactions and Skepticism
After Ronaldinho’s post, within minutes Water coin experienced a surge of approximately 38.8% to reach $0.0012. The following hours saw the digital currency dip below $0.00083 after that short-lived spike in prices.
Left with this pattern, its present value now stands at 71% below the June 26th peak point. All the same, the last token price remains higher by 158% compared to when Mesi made his endorsement call on June 8th this year.
Water Coin’s roadmap includes partnering with influencers before transforming into an environmentally charity-oriented token. As innovative as this route may sound, industry critics and experts are suspicious. The YouTube personality Ajay Kashyap together with crypto commentator Ponga have both voiced their doubts about whether this could be considered a possible pump-and-dump scheme.
Celebrity Endorsements and Crypto Scams
Celebrity involvement in cryptocurrency promotion has been both a blessing and a curse. Ronaldinho, Messi, and other high-profile individuals when endorsing might either lead to a wave of attention and investment or mislead their followers through exaggeration of the values of dubious projects.
This was recently seen when Ronaldinho appeared before a Brazilian parliamentary committee over allegations that he had participated in an alleged $61 million crypto pyramid scheme called “18kRonaldinho.” The platform, offering 2% returns daily, used his image without consent leading to legal scrutiny as well as public skepticism.
Wider Implications in the Crypto World
This problem is not limited to Ronaldinho and Messi only. For instance, there was the controversy that surrounded former Olympian Caitlyn Jenner’s involvement in some cryptos as well as Khazmat Chimaev who is also a UFC fighter.
A few days ago, Chimaev advertised a token named after him (Khazmat Chimaev (SMASH)) but disassociated himself from it later. ZachXBT probe on SMASH token showed indications of pump-and-dump with allegedly 78% ownership by the team.
As celebrity-endorsed tokens become more common, they are increasingly attracting regulatory attention. Should these promotions exhibit pump-and-dump characteristics, legal experts warn that they could catch the eye of the Securities and Exchange Commission (SEC).
In conclusion, endorsement by Ronaldo Gaúcho and Messi for Water Coin demonstrates how celebrities can be influential players within the crypto market.
Even though these endorsements provide great short-term gains, they reveal dangers inherent in such prominent personalities’ endorsements too. Investors should be wary before buying into these fame-driven currencies, if you do not want your money to disappear overnight then make certain you conduct due diligence on it!
