Soccer superstar Lionel Messi is now promoting a Solana-based memecoin called WaterCoin, through his Instagram Stories.
Waterworld
WaterCoin’s main goal is to highlight and address water-related problems worldwide, and according to the project’s official documentation, there is a plan to transform WaterCoin into a charity-focused environmental currency.
The roadmap includes stages like the initial token presale, listings on centralized exchanges, partnerships with celebrities, and eventually achieving its ecological mission.
It’s like any simple ICO roadmap from 2017, so the details on how these goals will be achieved are pretty limited, and the token’s price movements suggest nothing more than a typical pump and dump behavior.
Maybe it’s not that, as we can’t be sure, of course, but there are suspicious signs.
Messi is now shilling solana memecoins. Via his Instagram stories. This is wild. pic.twitter.com/qbr6Vk7yum
— Alex Krüger (@krugermacro) July 8, 2024
Risk business
Investing in memecoins is very, very risky because their rapid price increases are often not linked to any real utility of the token, but pure community hype.
Despite this, many traders still take on these risks, hoping to make quick, and hopefully gigantic profits.
The popularity of memecoins sparked debates within the crypto community, because some believe these tokens damage the reputation of the whole cryptocurrency space and attract negative attention from regulators.
They’re probably right, by the way. Others think memecoins can have value by showing market trends, measuring market sentiment, and creating lively communities.
The question is, how much exactly worth to owning something what could shows market trends. A TradingView indicator can do the same, for free, or not?
Oblivion
The main issue with memecoins is that they often lack real utility. While they can indicate trends and maintain community buzz, their price usually drops big time once the hype fades. And it’s always fades.
Many memecoins end up being almost worthless, with prices falling 90-99% after the initial excitement.
Though some memecoins indeed gain a large user base, countless others fail, leaving buyers and investors with losses.
It’s important to remember that while memecoins can be fun, they involve real money, so investors should be cautious.
