- Celebrity endorsements can rapidly boost crypto values, but also raise ethical and regulatory concerns.
- Water Coin’s market volatility underscores risks in meme-based cryptocurrencies.
- Skepticism persists among experts about the authenticity and long-term viability of tokens like Water Coin.
Ronaldinho Gaúcho and Lionel Messi, two renowned soccer legends, have sparked a surge in interest for the Solana token known as Water Coin (WATER) through their social media endorsements. The promotion, primarily through Instagram posts, led to a notable increase in WATER’s value shortly after each player’s respective endorsement.
On July 9, Ronaldinho shared an Instagram story with his 76.6 million followers, featuring himself alongside Water Coin’s mascot. This move closely followed a similar promotional effort by Messi the day prior, where Messi also posted an image related to Water Coin, resulting in a significant uptick in the token’s market value.
At press time, the live price of WATER stands at $0.000821, with a trading volume of $12,691,244 over the past 24 hours. Despite initial spikes post-promotion, WATER has faced a subsequent decrease, highlighting the volatile nature of meme-based cryptocurrencies.
Water Coin positions itself as a token with a mission beyond profits, claiming to support sustainable initiatives aimed at water conservation and distribution in Africa. However, critics, including prominent voices in the cryptocurrency community, have raised concerns about the token’s legitimacy and potential for market manipulation.
Ajay Kashyap, a well-known YouTuber specializing in crypto analysis, has publicly questioned the authenticity of Water Coin, labeling it a possible pump-and-dump scheme. Similar sentiments were echoed by other commentators in the industry, urging caution among investors.
The promotion of crypto tokens by celebrities like Ronaldinho and Messi is not without precedent. In Ronaldinho’s case, this recent endorsement comes shortly after his involvement in a controversy involving a crypto pyramid scheme that misused his likeness.
The scheme, known as “18kRonaldinho,” promised unrealistic returns and utilized the soccer star’s image without his consent, leading to legal repercussions and denials from Ronaldinho regarding any association with the project.
Regulators, including the SEC, have shown increasing scrutiny towards celebrity-backed cryptocurrencies due to their potential to mislead investors. Caitlyn Jenner and UFC fighter Khazmat Chimaev are among other public figures who have faced scrutiny for their involvement or endorsements of crypto tokens.
