Celebrity-Endorsed Token Sparks Controversy: Binance Founder’s Disclaimer Backfires

Binance founder Changpeng Zhao’s attempt to clarify his stance on Ronaldinho’s STAR10 token has sparked a full-blown controversy in the cryptocurrency community. The STAR10 token, launched by the former Brazilian soccer star, saw a 20% price pump shortly after its launch but quickly took a U-turn as on-chain analysts raised concerns about insider trading linked to the token launch.

Insider Trading Allegations

According to blockchain analytics firm Nansen, an insider wallet tied to Ronaldinho profited a massive $4.95 million, triggering skepticism among traders. The insider wallet sold 119,278 STAR10 tokens for 54 BNB ($33,106) and still holds $4.93 million worth of STAR10 tokens.

Binance Founder’s Disclaimer

Changpeng Zhao’s post on X, intended as a security reminder and disclaimer, warned crypto investors about copycats on decentralized exchanges and stated that the STAR10 token was launched exclusively on the BNB Chain. However, the post was met with immediate backlash from the crypto community, with many calling out Zhao for indirectly endorsing the shady token.

“Better stay silent and let the market do its own thing.”

Some users accused Zhao of promoting the token despite the disclaimer, with critics arguing that the post was enough to be considered an endorsement.

Ronaldinho’s Crypto History

Ronaldinho’s involvement in the cryptocurrency space has been marred by controversy. He has backed several questionable projects, including World Cup Inu and Lord Society NFT, which turned into pump-and-dump schemes. The soccer legend was also linked to the “18kRonaldinho” project, accused of operating a $61 million pyramid scheme.

Tips for Crypto Investors

  • Be cautious of celebrity-endorsed tokens, as they are often seen as cash grabs or attempts to capitalize on fame without any real utility.
  • Research the token’s legitimacy and check for any red flags, such as insider trading or pump-and-dump schemes.
  • Stay informed and follow reputable sources to stay up-to-date on the latest developments in the cryptocurrency space.

Stay Informed

Stay up-to-date on the latest cryptocurrency news and trends by following Global Crypto News. With in-depth analysis and expert insights, you’ll be better equipped to navigate the ever-changing landscape of cryptocurrencies.

Post Views: 1