Scandal has again rocked the world of crypto after a Cristiano Ronaldo-themed memecoin (CR7) plummeted almost entirely a few minutes after being launched.
The token, which surfaced over the weekend amidst unconfirmed rumors of an official Ronaldo token, initially shot up to a market capitalization value of $143 million in six minutes.
But the glory was short-lived. Within minutes, CR7’s market cap fell 98% as a number of wallets engaged in frantic sell-offs.
A number of Fake CR7 Tokens Appeared on Solana
The mania did not end with the primary CR7 token. At least half a dozen other CR7 meme tokens copied by name were launched on the Solana blockchain within a brief space of time of one another, though none managed to top the $1 million market cap.
While Ronaldo’s name has been widely made available, there have been no official statements or endorsements by the soccer icon himself regarding any cryptocurrency project.
The move is highlighting the new pattern of opportunist builders using celebrity names just to attract quick investments before investors suffer astronomical losses.
Experts warn that the speed and size of the CR7 crash show just how easily traders are being manipulated in meme coin markets.
Comparison with Other Celebrity-Branched Tokens
The CR7 memecoin collapse comes after a string of celebrity-branded cryptos that have displayed the same boom-and-bust patterns.
Kanye West’s newly launched YZY token reached a staggering $411 million market capitalization before plummeting 74% in 24 hours.
In another case, blockchain analysis revealed that over 90% of the YZY supply was concentrated in only six wallets, which created serious issues regarding centralization and manipulation.
Earlier in January, we at UnoCrypto reported, the $TRUMP memecoin plummeted from $71 billion to $56 billion in market cap a few days after its launch. At press time, the Trump token has a market cap of $1.65 billion according to data from CoinMarketCap
The rate of these recurring incidents suggests that celebrity-backed tokens are plagued with massive risks despite their initial hype.
Organized Schemes and Investor Risks
According to Bubblemaps, the unusual trading around the CR7 token indicates organized schemes to pump and dump the token for quick gain.
Crypto influencers were leading the way, hyping on their channels before abandoning their campaigns once the crash began.
These kinds of arrangements leave unsuspecting investors vulnerable, and many end up losing their funds in a matter of minutes.
The lack of transparency, combined with official approval, makes retail traders incapable of distinguishing real opportunities from manipulative scams.
Meme Coin Frenzy Continues Unabated Despite Warnings
Irrespective of the underlying risks, Solana’s meme coin community continues to experience gargantuan trading volumes. Platforms like Pump.fun, which generates over $800 million in revenue, fuel this speculative frenzy.
They also reported a notable increase in their weekly revenue that ramped up to over $ 13 million. The amount was the highest amount recognized in 6 months.
The rapid increase and collapse of the CR7 token point to a larger phenomenon in the crypto space, where hype projects with celebrity backing continue luring traders into quick profits and abrupt crashes.
While such tokens bring monolithic attention and volume, their illegitimacy and gigantic exposure to manipulation position investors for colossal losses.
The CR7 crash is also another reminder of the dangers of meme coin speculation in a space that is unregulated.
Also Read: Scammers Impersonate Saudi Crown Prince To Launch Fake Memecoin Amid Rising Crypto Fraud