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Messi-Endorsed Memecoin Faces Scrutiny for Insider Control

WATER memecoin faces backlash after on-chain analysis reveals substantial insider allocations, raising concerns about potential rug-pull risks despite celebrity endorsements.

1 min 55 secJuly 10, 2024
Messi-Endorsed Memecoin Faces Scrutiny for Insider Control

Memecoin creators are briefly capitalizing on celebrity endorsements but concerns over centralized token distributions persist. WATER, a Solana-based memecoin surged 323% in 10 hours following a promotion by Argentinian soccer legend Lionel Messi. On July 8, Messi shared a photo with WATER's mascot on Instagram. 

 

He has 504 million followers and with this endorsement, he drove WATER's price to $0.0012 from $0.00028. The next day, GaĂşcho Ronaldinho, another soccer star, shared a picture. This caused a temporary price spike following consolidation. 

 

 

Currently WATER trades at $0.000894 with a market cap of $85 million. This is down 67.6% from its June all-time high, posted one day after launch. Despite the hype on-chain analysts have raised alarms about centralized token control. BubbleMaps, tool that visualizes token distribution reveals over 30% of WATER's supply is controlled by insiders. Approximately one dozen Solana wallets hold 35% of WATER tokens. The top three wallets command 16%.

 

 

If you want to control your supply use one or two labeled wallets instead of spreading it across dozens of wallets and being shady about it tweeted BubbleMaps. Crypto analyst Ericonomic warned investors of potential rug-pull scams. Messi's previous promotions of Leafty and PLANET ended in rug-pulls.

 

"They [WATER] will probably rug soon so make yourself a favor and don't buy that sh*t.” - Crypto analyst Ericonomic

 

 

Although WATER claims to support water-related charities, it fails to provide concrete information on the organizations or plans for support.

 

Solana's memecoin frenzy pushed its on-chain trading volume to surpass Ethereum's. On July 9 Solana-based DEXes handled $14 billion in trades. This marked 93% increase from the prior week. It surpassed Ethereum's $13.8 billion. Raydium, Solana's leading DEX saw 57 million transactions in seven days. In comparison, Uniswap on Ethereum had 4.46 million. Step Finance data reveals over 100000 tokens were created on Solana the past week, with more than 500000 in the past month.

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