Brazilian footballer Ronaldinho Gaucho has joined Lionel Messi in promoting Water Coin (WATER), a Solana-based memecoin focused on water-related charities, on Instagram. The news sent the price of WATER soaring nearly 40% within an hour of Ronaldinho’s post, but it has since fallen back below its pre-promotion level.
This celebrity endorsement follows a similar post from Messi’s account in early July, which also resulted in a significant price increase for WATER. Water Coin claims to support sustainable projects that prevent deforestation and improve water access in Africa. Their website outlines plans for future celebrity partnerships to raise awareness for their environmental goals.
However, concerns linger regarding the legitimacy of WATER and the motives behind the celebrity endorsements. While Water Coin claims a charitable purpose, some crypto analysts, like Youtuber Ajay Kashyap, have expressed concerns about it being a potential “pump-and-dump” scheme. These schemes artificially inflate a cryptocurrency’s price through endorsements and marketing before investors cash out, leaving others holding a devalued asset.
Ronaldinho himself has a history of entanglement with controversial crypto ventures. In August 2023, he faced inquiries from Brazilian authorities regarding his alleged involvement in a $61 million crypto pyramid scheme that used his image for promotion. Ronaldinho denied any involvement in the scheme, claiming he was a victim of unauthorized use of his likeness.
These incidents highlight the growing scrutiny surrounding celebrity involvement in cryptocurrency promotion. Regulatory bodies like the US Securities and Exchange Commission (SEC) are increasingly focusing on celebrity-backed crypto tokens, with legal repercussions a potential future consequence. The case of UFC fighter Khazmat Chimaev further exemplifies the murkiness of this space. Chimaev initially promoted a memecoin bearing his name (SMASH) but later denied any involvement, raising questions about transparency and potential manipulation.
The endorsement of WATER by Messi and Ronaldinho undoubtedly boosted its price, but questions remain regarding its long-term viability and the ethics surrounding celebrity involvement in cryptocurrency promotion. Investors are advised to exercise caution and conduct thorough research before investing in any cryptocurrency, particularly those backed by celebrity endorsements.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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