Ronaldinho Gaúcho's STAR10 memecoin crashes 60% within 48 hours of launch

Brazilian football legend Ronaldinho Gaúcho's highly anticipated STAR10 memecoin

The hype around Brazilian football legend Ronaldinho Gaúcho's new memecoin, STAR10, has fizzled out rapidly, with the token dipping nearly 60% in 48 hours to reach just $12.28 million in market capitalisation.

The rapid decline has fuelled skepticism among investors and blockchain experts, who pointed towards the token's controversial tokenomics, insider trading allegations and initial security vulnerabilities as key reasons for its dramatic crash.

The STAR10 fiasco also adds to a growing list of celebrity-backed cryptocurrency failures, drawing comparisons to the infamous $LIBRA token collapse which was endorsed by Argentine President Javier Milei.

Ronaldinho, a former Brazil and F.C. Barcelona superstar, unveiled STAR10 with much fanfare, promising holders "exclusive experiences, real-world benefits, signed collectibles" and access to an AI agent in an X post on March 3.

"This token is built for those who want to be part of history," he added, leveraging his status as a soccer icon to drive hype for the coin.

STAR10, launched on the BNB Chain, quickly surged to a $397 million market cap within 10 hours of launch, fueled by Ronaldinho's global fanbase and the speculative frenzy surrounding celebrity meme coins.

However, the excitement quickly soured as red flags emerged, exposing structural weaknesses in the project 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, immediately raised 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, further detracting from 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. Yet, 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 also amplified STAR10's downfall. Investors drew parallels to the $LIBRA token, which was 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 pulled $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 STAR