Ronaldinho Gaúcho, the Brazilian soccer icon, is the latest celebrity to enter the cryptocurrency market. His newly launched meme coin, Star10 (STAR10), encountered heightened volatility today (Monday).

“My new one and ONLY OFFICIAL token is HERE! It’s time to celebrate greatness, passion, and that legendary spirit that NEVER fades Legends are not born… THEY ARE FORGED. And YOU can choose to be a part of it. Get your $STAR10 NOW,” the soccer legend wrote on X.

However, questions surrounding its tokenomics and security risks have sparked heated discussions, especially in the wake of recent celebrity-backed crypto failures.

Meteoric Rise and Immediate Scrutiny

Ronaldinho unveiled Star10 on the BNB Chain on March 3, promising exclusive perks for holders, including signed collectibles and access to his AI agent.

The token gained rapid traction, peaking at a $397 million market cap before pulling back to $274 million, according to Dexscreener data. Despite the hype, the project’s structure raised concerns. A significant 35% of the total supply is reportedly allocated to insiders, 20% for Ronaldinho himself, and 15% for the development team.

Celebrity Crypto Endorsements Under Fire

This has sparked fears of potential market manipulation, especially after past incidents like the $4 billion crash of Libra (LIBRA), a meme coin endorsed by Argentine President Javier Milei. LIBRA plummeted 94% after insiders withdrew $107 million in liquidity shortly after launch.

With the rise of celebrity-endorsed cryptocurrencies, industry experts urge investors to remain cautious. The broader memecoin market continues to face intense scrutiny.

While Ronaldinho’s renouncement of token ownership eases some concerns, the heavy insider allocation and the history of failed celebrity-backed projects leave investors wary. Whether Star10 will sustain its early momentum or follow the fate of other high-profile crypto flops remains to be seen.

Source: Finance Magnates