Ronaldinho Gaúcho’s cryptocurrency drops by 80% due to fraud concerns

Ronaldinho Gaúcho recently entered the world of cryptocurrencies by introducing the STAR10 token during the carnival. However, the initial excitement quickly turned into a financial setback, with investors facing an 82% loss.

The token was declared the “official currency” of the former player on Sunday (2), offering distinct advantages like self-regulated collectibles and an AI agent for its holders.

The token soon became embroiled in controversies, such as security breaches, sudden price changes, and allegations of insider trading.

Blockchain experts found a significant vulnerability in the STAR10 smart contract code shortly after its launch.

Token creators were able to destroy investors’ assets without warning due to a vulnerability, endangering the funds of holders.

GoPlus Security, a security-focused company, issued a warning on the X social platform regarding a vulnerability, causing heightened worry when Changpeng “CZ” Zhao, the founder of Binance, reposted the alert and urged investors to proceed with care.

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Suspected manipulation in the STAR10 market

The Onchainlens analysis firm reported that by investing a mere $22,247 in STAR10 tokens, a portfolio generated a profit of nearly $5 million, leading to concerns about potential insider trading.

The lmk encryption copy-trading platform cautioned that the token’s launch was mainly controlled by “early snipers” who used robots to obtain substantial amounts of tokens ahead of other traders.

The market’s extreme instability led to a sharp decline in STAR10’s value, dropping from US$0.35 on Monday to US$0.06 shortly after, representing an 82% decrease from its peak.

Ronaldinho stated that the issue had been resolved.

Ronaldinho Gaúcho stepped down on Monday morning, addressing the token controversy and confirming that the issue had been resolved. He mentioned that the problem with the token had been rectified in a post on his previous Twitter account.

GoPlus Security, a security specialist, verified the accuracy of the malfunction shortly afterward.

Ronaldinho explained that the tokens, designed to ensure liquidity in transactions, are controlled by the creators and cannot be transferred for 255 years.

Developers holding a large amount of liquidity can lead to increased risks of fraud, such as the “rug pull” scam seen in projects like the Libra initiative of Argentine President Javier Milei.