In little time, meme cash have become a rage within the crypto ecosystem, luring many celebrities to hop on the bandwagon, within the hope to capitalise on the present bullish cycle.
Caitlyn Jenner, Iggy Azalea, Lil Pump, Andrew Tate- the names are many who’ve lately tried to pump varied meme coin tasks utilizing their celeb standing. In that regard, legendary footballers Ronaldinho and Lionel Messi have additionally joined the celeb membership selling Solana-based meme coin Water ($Watercoin) on their Instagram handles.
This out-of-blue promotion tactic by Messi and Ronaldinho has sparked a debate within the crypto group concerning the legitimacy and potential way forward for Watercoin in the neighborhood, as many Solana-based memecoins, usually promoted by celebs, have beforehand turned out to be scams.
On July 8, Lionel Messi shared a publish on his story, that includes a picture with the mascot of Watercoin (an animated water glass) on his shoulder. Within the publish, he additionally tagged the official Instagram deal with of Water Solana.
An analogous publish was shared on the Instagram deal with of Brazilian soccer participant Ronaldinho Gaucho the next day.
The promotion led to the worth of the Water meme coin to spiral, taking pictures up by 350% from $0.00032 to $0.00146 inside hours. Nonetheless, the rally couldn’t be sustained for lengthy, and the price dropped once more the subsequent day. On the time of writing, the price of the Water meme coin is $0.00088, in keeping with the info on CoinMarketCap.
What’s Water Memecoin?
Water Meme coin is constructed upon the Solana blockchain with no intrinsic worth. Created by the builders of $BEER, one other Solana-based memecoin, the WaterCoin undertaking makes use of “Freezing” (staking) and “Vaporization” (burning) strategies to spice up engagement and improve the token’s worth.
As per the creators of Water Meme coin, they intend to ‘‘create the cleanest and most ethical platform in the crypto space”. According to their official website, Water Meme coins follow the same ‘scarcity model’ as Bitcoin.
Moreover, the quote “You definitely need some WATER after you had too much alcohol” on its web site might point out an ambiguous hyperlink with Beer Memecoin.
The Water Meme coin undertaking guarantees to prioritise charitable works to make a net-positive influence on the actual world. This contains international water initiatives such because the creation of sustainable tasks to scale back deforestation and assist with water distribution within the driest components of Africa.
Is Water Solana Memecoin Legit or Rip-off?
Amid all these flowery guarantees of rewards and charity, there isn’t any clarification on its utility or use circumstances accessible. The legitimacy of the Water Solana meme coin is questionable, and it’s essential to strategy it with warning.
The Solana blockchain has grow to be a protected haven for scammers aiming to capitalise on creating faux hype. Moreover, most memecoins maintain no intrinsic worth; any dramatic surges of their reputation usually stem from short-term hype on social media and on-line sentiment.
A tough estimate means that up to 90% of newly launched memecoins might be scams or possess little to no long-term worth. Big_Cat, a well-liked determine on Solana estimates that about 95% of the contracts on Solana are created by malicious actors.
Additionally, Considerations have been raised concerning the focus of the token’s provide, with a good portion held by a small variety of wallets. Information on Solana.fm counsel that 32.24% of whole whole provide is locked in simply 10 wallets. This will increase the danger of price manipulation and sudden dumps, often called “rug pulls”.
Moreover, there are lots of people on social media platforms like Twitter and Instagram who’re criticising the undertaking, calling it a pump-and-dump rip-off.
Whereas the Water Basis supposedly solely distributed 5% of the 88.88 billion WATER tokens to itself, YouTuber Ajay Kashyap was among the many business critics who flagged WATER as a possible pump-and-dump token.
Widespread crypto commentator Ponga on Twitter says, “Is this real or another pump and dump ****,” added. “Stay cautious boys.”
Additionally, beforehand endorsed meme coin by Messi in March, Planet, fell drastically after the promotion.
Widespread crypto analyst @ericonomics writes on X, “They will probably rug [pull] soon so make yourself a favour and don’t buy that ****.”
“Third token scam that Messi promotes,” he said. “The first one was Leafty, which was a rug (they removed the liquidity like 5 days later lol). The second one was Planet, an slow rug that is like -90% since that promotion.”
Advisory: Don’t Chase Meme cash Endorsed By Public Figures & Celebrities
Lately, the Solana blockchain has seen a surge in memecoins, with some sadly turning out to be scams.
One notable instance is “SolCatCoin,” which promised excessive returns and rapidly gained reputation because of intense social media advertising and endorsements from faux influencer accounts.
Traders had been attracted by guarantees of fast good points, solely to find that the undertaking lacked transparency and utility.
One other case concerned “Dogeluna,” which capitalised on the celebrity of Dogecoin and Shiba Inu however in the end disappeared with buyers’ funds, abandoning a non-functional web site and inactive social media channels.
Investing in memecoins will be tempting, particularly when endorsed by celebrities and public figures. Nonetheless, it’s essential to strategy these investments with warning.
Memecoins, usually created as a joke or to capitalise on web tendencies, will be extraordinarily unstable and dangerous. When well-known personalities endorse these cash, it could possibly create a hype which may not be backed by substantial worth or utility, main many to take a position with out thorough research.
Two different notable memecoins that got here out as pump and dump scams are Squid Recreation Token and SaveTheKids. The Squid Recreation Token, named after the favored Netflix collection, noticed an enormous spike in worth earlier than the builders pulled the rug, disappearing with thousands and thousands of {dollars} from buyers.
Equally, SaveTheKids, which was promoted by varied influencers, turned out to be a rip-off, with its promoters dumping the coin and abandoning the undertaking quickly after it launched.
It’s vital to know that celebrities and influencers might not have in-depth data concerning the tasks they’re selling. Their endorsements are sometimes a part of advertising methods that may be deceptive.
The joy generated by a well-known identify can overshadow the elemental points of the coin, comparable to its guarantees, use case, and the workforce behind it. This will result in impulsive selections the place buyers purchase into the hype with out conducting their due diligence.