Brazilian football legend Ronaldinho Gaúcho’s highly anticipated STAR10 memecoin, launched on the BNB Chain on March 3, has dipped nearly 60% in value within 48 hours. It has declined from a peak market capitalisation of $397 million to just $12.28 million.
The rapid decline has fuelled widespread scepticism among investors and blockchain experts. The token’s controversial tokenomics, insider trading allegations, and initial security vulnerabilities have been cited as key reasons for its dramatic crash.
The STAR10 dramatic dip adds to a growing list of celebrity-backed cryptocurrency failures, drawing comparisons to the infamous $LIBRA token collapse endorsed by Argentine President Javier Milei.
Ronaldinho, a former Brazil and F.C. Barcelona superstar, unveiled STAR10 with much fanfare. It promised holders “exclusive experiences, real-world benefits, signed collectibles,” and access to an AI agent.
In an X post on March 3, he declared that the token was “built for those who want to be part of history,” leveraging his status as a soccer icon to drive initial hype. The coin surged to a $397 million market cap within 10 hours of launch, fuelled by his global fanbase and the speculative frenzy surrounding celebrity meme coins. However, the excitement quickly disappeared as red flags emerged, exposing structural weaknesses and eroding investor confidence.
Why did STAR10 crash?
A primary factor in STAR10’s crash was its questionable tokenomics. Security experts and blockchain analysts revealed that 35% of the token’s 1 billion total supply was allocated to insiders, with 20% controlled by Ronaldinho himself and 15% held by his team.
This significant insider allocation, far higher than the 10-20% typically seen in reputable crypto projects, raised immediate concerns about fairness and potential market manipulation. Onchain analyst The Data Nerd noted that five insider wallets holding a majority of the supply had not sold their tokens but instead added liquidity to trading pools, a move interpreted by some as an attempt to stabilise the price temporarily.
However, blockchain analytics firm Onchain Lens uncovered a more alarming development: one team wallet turned an initial investment of $29,247 into unrealised gains of $4.93 million by holding 20.68 million STAR10 tokens after selling a small portion for $33,106. Another wallet linked to the team reportedly acquired 12.24% of the supply for just $50,000, later selling 1 million tokens for $270,000, with its remaining holdings valued at $33.5 million.
These transactions sparked fears of insider profiteering, undermining trust in the project.
Adding to the numerous suspicions, security experts flagged critical vulnerabilities in STAR10’s smart contract shortly after launch. Web3 security firm GoPlus Security warned that the contract initially allowed Ronaldinho to burn tokens from any holder’s wallet at will, posing a catastrophic risk to investors.
This revelation, coupled with the fact that ownership had not been renounced, led to accusations of centralisation and potential fraud. As criticism mounted, Ronaldinho announced he had renounced ownership of the contract, eliminating the token-burning risk. However, the damage was already done. The initial security lapse, combined with the token’s insider-heavy distribution, fuelled a narrative of distrust that triggered a mass sell-off.
Another case of celebrity meme coin failure
The broader context of celebrity meme coin failures further amplified STAR10’s downfall. Investors drew parallels to the $LIBRA token, launched in Argentina with President Javier Milei’s endorsement. LIBRA soared to a $4.5 billion market cap within 24 hours but crashed 94% after insiders holding 80% of the supply withdrew $107 million in liquidity, leaving investors with $4 billion in losses.
Milei later distanced himself from the project, claiming ignorance of its development, though he now faces impeachment proceedings for promoting what critics call a scam. STAR10’s similarities, high insider control, and a rapid rise followed by a steep decline evoked memories of LIBRA, prompting cautious investors to exit early.
Ronaldinho’s checkered history in the crypto space also played a role in STAR10’s collapse. In 2022, he launched the RON token, which flopped amid a cooling memecoin market. Later that year, he promoted World Cup Inu ahead of the 2022 World Cup, only for it to surge briefly before crashing. In 2023, Ronaldinho denied involvement in the “18K Ronaldinho” Ponzi scheme, which defrauded investors of $61 million with promises of 400% returns.
This track record cast a shadow over STAR10, with many viewing it as another opportunistic cash grab rather than a legitimate project. Posts on X reflected this sentiment, with users warning of an impending “rug pull” and labelling the token a “scam” orchestrated by “Scamdinho.”
Market dynamics exacerbated the crash. After peaking at $0.3964, STAR10 retreated to $0.274 within hours and continued its downward spiral. By March 5, it was trading at $0.1491, with a 24-hour trading volume of $21.5 million, down over 60% from the previous day. The token’s inability to maintain momentum, coupled with a lack of clear utility beyond hype-driven perks, left it vulnerable to profit-taking and panic selling.
Unlike established cryptocurrencies, memecoins like STAR10 often rely on celebrity appeal and speculative trading, making them prone to volatility when confidence wanes.
The STAR10 crash underscores broader concerns about celebrity-endorsed cryptocurrencies. While Ronaldinho’s fame drove initial interest, the combination of insider dominance, security flaws, and a sceptical market proved fatal.
Analysts suggest the token’s failure reflects a growing fatigue with celebrity memecoins, especially after high-profile disasters like LIBRA. For Ronaldinho, STAR10 risks tarnishing his legacy further, joining a list of failed crypto ventures that have left investors wary. As the token languishes at a fraction of its peak value, it serves as a cautionary tale in the unpredictable world of digital assets.
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