Ronaldinho's STAR10 token establishes its presence on March 3 on the BNB Chain.

Soccer legend Ronaldinho Gaúcho has entered the crypto industry with his token. STAR10 gained attention due to its celebrity backing and concerns about its tokenomics and security risks.

A new token has arrived on the BNB Chain, with former soccer star Ronaldinho Gaúcho launching his own crypto.

Ronaldinho’s token, STAR10, has quickly gained attention for its celebrity backing and concerns about its tokenomics and potential security implications. Here’s a breakdown of this new token.

STAR10 began trading on March 3, quickly reaching a $397 million market cap within a few hours of launch. Later that day, the token’s market cap dropped to $274 million.

A large portion of Star10’s total supply will go to insiders, with 35% of the token going to a few key figures. Ronaldinho will receive 20% of the total supply, while another 15% is allocated to his team.

This heavily concentrated initial distribution may be problematic, especially in the current crypto climate. A recent analysis by The Data Nerd highlighted the rapid collapse of LIBRA, a new token that lost 94% of its value.

After raising $2.4 billion, the token crashed quickly as insiders pulled $107 million in liquidity only six hours after launch.

The Data Nerd:9 hours ago, @10Ronaldinho just announced his token and MC just reaches $300M quickly.After creating 1B tokens, 200M added for liquidity and 800M transferred to 5 wallets. Those 5 wallets haven’t sold any (just added some for liquidity). 2 minutes later, a wallet 0x01D…

However, Ronaldinho’s token did not show any signs of insider dumping. Onchain analysts noted that five major wallets linked to insiders did not sell any tokens and instead added liquidity to trading pools. This could suggest a more stable approach from the token’s creators.

GoPlus Security, a Web3 security company, warned that Ronaldinho’s token posed a risk due to excessive permissions in the deployed contract.

The creator could delete any investor’s tokens through the contract, either intentionally or not. Investor funds were at constant risk, and the token creator could unintentionally reduce their balance.

Moreover, the token creator had complete control over the project’s treasury and could redirect it at any time. This lack of checks and balances posed a significant concern.

However, blockchain security firm SlowMist reported that the token creator dropped ownership. This move prevents anyone from altering the coin’s contract and reduces previous security risks.

The move should enhance investor trust levels in the project. But even with this change, it does not alter the speculative nature of memecoins as digital assets.