In little time, meme coins have turned into a rage in the crypto ecosystem, luring many celebrities to hop on the bandwagon, in the hope to capitalise on the current bullish cycle.
Caitlyn Jenner, Iggy Azalea, Lil Pump, Andrew Tate- the names are many who have recently attempted to pump various meme coin projects using their celeb status. In that regard, legendary footballers Ronaldinho and Lionel Messi have also joined the celeb club promoting Solana-based meme coin Water ($Watercoin) on their Instagram handles.
This out-of-blue promotion tactic by Messi and Ronaldinho has sparked a debate in the crypto community about the legitimacy and potential future of Watercoin in the community, as many Solana-based memecoins, often promoted by celebs, have previously turned out to be scams.
On July 8, Lionel Messi shared a post on his story, featuring an image with the mascot of Watercoin (an animated water glass) on his shoulder. In the post, he also tagged the official Instagram handle of Water Solana.
A similar post was shared on the Instagram handle of Brazilian football player Ronaldinho Gaucho the following day.
The promotion led to the value of the Water meme coin to spiral, shooting up by 350% from $0.00032 to $0.00146 within hours. However, the rally couldn’t be sustained for long, and the price dropped again the next day. At the time of writing, the price of the Water meme coin is $0.00088, according to the data on CoinMarketCap.
What is Water Memecoin?
Water Meme coin is built upon the Solana blockchain with no intrinsic value. Created by the developers of $BEER, another Solana-based memecoin, the WaterCoin project uses “Freezing” (staking) and “Vaporization” (burning) techniques to boost engagement and enhance the token’s value.
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.
Furthermore, the quote “You definitely need some WATER after you had too much alcohol” on its website may indicate an ambiguous link with Beer Memecoin.
The Water Meme coin project promises to prioritise charitable works to make a net-positive impact on the real world. This includes global water initiatives such as the creation of sustainable projects to reduce deforestation and help with water distribution in the driest parts of Africa.
Is Water Solana Memecoin Legit or Scam?
Amid all these flowery promises of rewards and charity, there is no clarification on its utility or use cases available. The legitimacy of the Water Solana meme coin is questionable, and it is crucial to approach it with caution.
The Solana blockchain has become a safe haven for scammers aiming to capitalise on creating fake hype. Additionally, most memecoins hold no intrinsic value; any dramatic surges in their popularity typically stem from temporary hype on social media and online sentiment.
A rough estimate suggests that up to 90% of newly launched memecoins could be scams or possess little to no long-term value. Big_Cat, a popular figure on Solana estimates that about 95% of the contracts on Solana are created by malicious actors.
Also, Concerns have been raised about the concentration of the token’s supply, with a significant portion held by a small number of wallets. Data on Solana.fm suggest that 32.24% of total total supply is locked in just 10 wallets. This increases the risk of price manipulation and sudden dumps, known as “rug pulls”.
Furthermore, there are a lot of people on social media platforms like Twitter and Instagram who are criticising the project, calling it a pump-and-dump scam.
While the Water Foundation supposedly only distributed 5% of the 88.88 billion WATER tokens to itself, YouTuber Ajay Kashyap was among the industry critics who flagged WATER as a potential pump-and-dump token.
Popular crypto commentator Ponga on Twitter says, “Is this real or another pump and dump ****,” added. “Stay cautious boys.”
Also, previously endorsed meme coin by Messi in March, Planet, fell drastically after the promotion.
Popular 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 stated. “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 coins Endorsed By Public Figures & Celebrities
Recently, the Solana blockchain has seen a surge in memecoins, with some unfortunately turning out to be scams.
One notable example is “SolCatCoin,” which promised high returns and quickly gained popularity due to intense social media marketing and endorsements from fake influencer accounts.
Investors were attracted by promises of rapid gains, only to discover that the project lacked transparency and utility.
Another case involved “Dogeluna,” which capitalised on the fame of Dogecoin and Shiba Inu but ultimately disappeared with investors’ funds, leaving behind a non-functional website and inactive social media channels.
Investing in memecoins can be tempting, especially when endorsed by celebrities and public figures. However, it is crucial to approach these investments with caution.
Memecoins, often created as a joke or to capitalise on internet trends, can be extremely volatile and risky. When famous personalities endorse these coins, it can create a hype that might not be backed by substantial value or utility, leading many to invest without thorough research.
Two other notable memecoins that came out as pump and dump scams are Squid Game Token and SaveTheKids. The Squid Game Token, named after the popular Netflix series, saw a massive spike in value before the developers pulled the rug, disappearing with millions of dollars from investors.
Similarly, SaveTheKids, which was promoted by various influencers, turned out to be a scam, with its promoters dumping the coin and abandoning the project soon after it launched.
It’s important to understand that celebrities and influencers may not have in-depth knowledge about the projects they are promoting. Their endorsements are often part of marketing strategies that can be misleading.
The excitement generated by a famous name can overshadow the fundamental aspects of the coin, such as its promises, use case, and the team behind it. This can lead to impulsive decisions where investors buy into the hype without conducting their due diligence.
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