Ronaldinho’s Token Sparks Controversy Over Insider Supply

Ronaldinho’s token, STAR10, established its presence on March 3 on the BNB Chain. Soccer legend Ronaldinho Gaúcho has entered the crypto industry with his token.

STAR10 gained attention due to its celebrity backing and concerns about its tokenomics and security risks. Read on to get the hang of this token. Within hours of its launch, Ronaldinho’s token had a $397 million market cap, dropping to $274 million later that day.

The Problem with Insider Supply

The biggest issue? 35% of Star10’s total supply is for insiders—with 20% going to Ronaldinho and another 15% to his team. In a crypto market still reeling from the $4 billion collapse of the LIBRA token, this kind of setup has investors on edge. LIBRA crashed 94% after insiders pulled $107 million in liquidity only hours after launch.

For now, Ronaldinho’s token hasn’t shown signs of insider dumping. Onchain analysts noted that five major wallets linked to insiders haven’t sold any tokens. Instead, they have added liquidity to trading pools. This could suggest a more stable approach but doesn’t erase concerns.

Security Risks and Ownership Renouncement

The Web3 security company GoPlus Security warned that Ronaldinho’s token posed a risk. Its creator could delete any investor’s tokens through the contract, whether intentionally or not. Investor funds were at constant risk, and the token’s creator could unintentionally reduce their balance.

SlowMist reported that the token creator dropped ownership. This prevents anyone from altering the contract and reduces previous security risks. This move enhances investor trust levels but does not change the speculative nature of memecoins as digital assets.

Conclusion

Ronaldinho’s token might not be an outright scam. Still, investors should watch its security practices and insider distribution methods. Investing in crypto markets offers thrilling possibilities. Yet, it also comes with significant safety risks, especially when celebrities get involved. Investors need to analyze celebrity-endorsed tokens before making investment decisions.

Disclaimer

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers, and their risk tolerance may be different than yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. This post is sponsored by Clearpool.

Copyright Altcoin Buzz Pte Ltd.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.