Soccer legend Ronaldinho Gaúcho has followed in the footsteps of Lionel Messi by promoting the Solana-based token WATER Coin (WATER) in an Instagram story on July 9.
The story featured a photo of Ronaldinho with Water Coin's mascot peeking over his shoulder and a tag of the token's Instagram account.
Following this endorsement, WATER's value spiked 50% to $0.0012. However, the token's price soon fell below $0.0008, 71.6% lower than its all-time high.
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The WATER project claims to focus on raising awareness for water-related environmental issues, such as preventing deforestation. Its roadmap includes presale, decentralized and centralized exchange listing, non-fungible token (NFT) collection release, celebrity partnerships, and, ultimately, becoming a currency dedicated to charitable efforts.
Despite its ambitious goals, WATER has faced criticism within the crypto community, with people flagging it as a potential pump-and-dump scheme.
Adding to the concerns over the token's legitimacy, blockchain data service Bubblemaps reported that insiders hold 30% of WATER.
This is not the first time that Ronaldinho has been involved in questionable crypto projects. In August, he had to testify before a Brazilian congressional committee over an alleged $61 million crypto pyramid scheme known as "18K Ronaldinho," which used the soccer star's image in its marketing.
Ronaldinho denied any association with the project, claiming he was also a victim, as the scammers used his image without permission. He said:
It is not true I am the founder and controlling partner of 18K Ronaldinho.
The WATER promotions come at a time when celebrities are increasingly getting involved with crypto. Pop artist Jason Derulo, rappers Iggy Azalea and Waka Flocka Flame, and former Olympian Caitlyn Jenner have all recently launched their tokens.
There has also recently been a surge in hacks of celebrity social media accounts to promote crypto, with rapper Doja Cat and actress Sydney Sweeney among the victims.
While celebrity endorsements can temporarily boost the visibility and value of cryptocurrencies, potential investors should exercise due diligence to avoid falling victim to speculative schemes.
