It is important for investors to exercise caution when considering investments in memecoins, especially those endorsed by public figures and celebrities. Memecoins can be extremely volatile and risky, and their value may not be backed by substantial utility or transparency.
Meme coins have quickly gained popularity in the cryptocurrency world, drawing numerous celebrities to join the trend, seeking to benefit from the ongoing bull market.
As a researcher studying the intersection of celebrity influence and cryptocurrency, I’ve noticed an increasing trend of well-known figures endorsing various meme coins in the digital currency space. Among them are Caitlyn Jenner, Iggy Azalea, Lil Pump, and Andrew Tate, to name a few. Interestingly, legendary footballers Ronaldinho and Lionel Messi have also entered this realm by promoting Water ($Watercoin), which is built on the Solana blockchain, through their Instagram channels.
As an analyst, I’ve noticed an unexpected promotion tactic from Messi and Ronaldinho for Watercoin on the Solana blockchain. This move has ignited a heated discussion in the crypto community regarding the authenticity and prospects of Watercoin within our circles. Given past experiences with memecoins endorsed by celebrities on the Solana network, many are raising concerns about potential scams.
How Messi and Ronaldinho Promoted Watercoin?
On July 8th, Lionel Messi put up a story on Instagram, including a picture of himself with the Watercoin mascot (represented by an animated water glass) resting on his shoulder. He also mentioned the Instagram account of Water Solana in this post.
The day after that, a comparable post was posted on Ronaldinho Gaucho’s Instagram account.
The promotion caused a significant surge in the value of the Water meme coin, rising dramatically from $0.00032 to $0.00146 within hours. However, this upward trend did not last, and the price took a downturn the following day. Currently, according to CoinMarketCap’s data, the price of the Water meme coin stands at $0.00088.
What is Water Memecoin?
The founders behind Water Meme coin aim to establish a crystal clear and morally upright environment within the cryptocurrency market. As stated on their website, Water Meme coins adopt the same “scarcity principle” as Bitcoin.
As a researcher, I’ve come across the statement “You definitely need some WATER after you had too much alcohol” on the Beer Memecoin website. The connection between this quote and the memecoin seems somewhat unclear to me.
As a researcher investigating the Water Meme coin project, I can share that this initiative is committed to prioritizing charitable efforts aimed at creating a positive impact on the real world. A significant aspect of this commitment involves focusing on global water initiatives. These projects encompass the development of sustainable solutions to combat deforestation and facilitate effective water distribution in the driest regions of Africa.
Is Water Solana Memecoin Legit or Scam?
Among the numerous grand assurances of benefits and donations, there lacks clarity regarding the practical application and value of Water Solana, the doubtful meme token. It’s essential to exercise caution when dealing with this coin.
As a researcher studying the blockchain ecosystem, I’ve noticed an unfortunate trend emerging on the Solana network: it has become a popular destination for individuals looking to capitalize on creating false hype through scams. Furthermore, many memecoins lack inherent value, and any significant increases in their popularity are usually driven by fleeting social media buzz or online sentiment rather than fundamental factors.
There are worries about the distribution of a token’s supply, as a large chunk is controlled by a few wallets. According to Solana.fm, approximately 32% of the total token supply is kept in just ten wallets. This arrangement heightens the possibility of price manipulation and potential sudden sell-offs, which are referred to as “rug pulls.”
Additional criticism of the project can be found on social media sites such as Twitter and Instagram, where users have labeled it as a potential pump-and-dump scheme.
Critics in the industry, including YouTuber Ajjay Kashyap, raised concerns over the Water Foundation supposedly receiving only 5% of the total 88.88 billion WATER tokens, which some viewed as a red flag for potential pump-and-dump schemes.
Ponga, a well-known cryptocurrency commentator on Twitter, expressed caution, stating, “Is this authentic or just another price manipulation scheme? Be careful, gentlemen.”
As a crypto investor, I’ve noticed that when a popular figure like Messi endorses a meme coin, such as Planet, there can be a significant surge in its price. However, my experience has also taught me that these price increases are not always sustainable. After the promotion in March, the value of Planet took a sharp downturn.
Based on the analysis of crypto expert @ericonomics regarding X, I would advise against investing in it for now. There are signs that a rug pull might occur, which means the team behind the project could potentially take away the funds invested by investors, leaving them with losses. So, it’s best to avoid this investment risk and look for better opportunities instead.
“Messi endorsed a third fraudulent scheme, he declared. The initial one was Leafty, which turned out to be a rug pull (the liquidity was taken away just five days later). The second one was Planet, a slow-moving rug that has lost approximately 90% of its value since his endorsement.”
Advisory: Don’t Chase Meme coins Endorsed By Public Figures & Celebrities
Lately, there’s been a significant increase in the number of memecoins on the Solana blockchain. Regrettably, not all of them have turned out to be legitimate projects.
One noteworthy instance is “SolCatCoin,” which generated significant interest with its promise of lucrative yields. Its rapid growth can be attributed to extensive promotion on social media and deceitful backing from bogus influencer personas.
As an analyst, I’ve observed that some investors were lured in by enticing promises of swift profits. However, upon closer examination, they discovered that the project in question fell short in both transparency and practical application.
An instance occurred involving “Dogeluna,” which built on the popularity of Dogecoin and Shiba Inu but in the end vanished with the investors’ money, resulting in a defunct website and dormant social media pages.
Considering the allure of investing in memecoins, which may be boosted by celebrity endorsements and public figures, it’s essential to exercise caution before making any financial commitments.
Memecoins, which are frequently developed based on humorous concepts or popular internet fads, come with significant volatility and risk. The endorsement of these coins by well-known figures can ignite a buzz that might not be grounded in genuine worth or functionality. Consequently, investors may feel compelled to jump on the bandwagon without conducting comprehensive research.
Two other well-known meme tokens that turned out to be pump-and-dump schemes are Squid Game Token and SaveTheKids. The value of Squid Game Token surged dramatically, inspired by the famous Netflix show’s name. However, the developers eventually pulled an exit scam, vanishing with substantial funds from unsuspecting investors.
As a crypto investor, I’ve learned the hard way that not all projects are trustworthy. For instance, I once invested in SaveTheKids, which was heavily promoted by influencers in the community. Unfortunately, after the launch, the promoters abruptly dumped the coin and abandoned the project. It was a disappointing experience, but a valuable lesson in due diligence before making any investment decisions.
As a researcher, I’ve come across an intriguing observation. While celebrities and influencers carry significant weight in today’s marketing landscape, it is essential to acknowledge that their involvement might not always equate to an extensive understanding of the projects they are endorsing. Their endorsements often serve as strategic tools for brands, which could potentially lead to misrepresentations.
A well-known moniker can stir up considerable enthusiasm, obscuring essential features of a coin, including its pledges, utility, and the individuals responsible for its development. Consequently, investors might make precipitate choices, driven by hype rather than conducting thorough research.
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2024-07-11 16:06