Key Takeaways

• Rumors of a new Cristiano Ronaldo memecoin led to the launch of a fake “CR7” token that soared to a $143 million market cap before crashing by 98% in just 15 minutes.

• Some on-chain analysts described the event as a “rug pull,” a common crypto scam where a project’s developers or promoters lure investors and then suddenly abandon the project, taking the funds with them.

• The incident highlights a troubling pattern of celebrity-themed scams, with the CR7 “rug pull” closely following a similar, albeit official, launch by Kanye West that also saw a dramatic pump-and-dump.

A wave of excitement and speculation in the crypto community over the weekend quickly turned into a major scam.

Following rumors that soccer star Cristiano Ronaldo was launching his own memecoin, a fake token named “CR7” was created on the Solana network.

This fraudulent token initially skyrocketed to a market capitalization of $143 million before crashing by 98% in a matter of minutes, leaving countless investors with worthless tokens. This has been widely identified as an organized “rug pull.”

The Anatomy of an Influencer-Led Rug Pull

A “rug pull” is a malicious crypto maneuver where promoters artificially inflate a token’s value before selling off their holdings, causing the price to collapse and leaving other investors with massive losses.

In this case, on-chain analysis suggests the CR7 scam was a coordinated effort by a group of crypto influencers who quickly deleted their promotional posts after the crash.

They leveraged Cristiano Ronaldo’s official Binance partnership to create online buzz for an unendorsed token and lured investors with its contract address.

The rapid price crash was the result of a “soft rug pull,” where connected wallet addresses quickly cashed out and disappeared.

Riding the Celebrity Memecoin Wave

The CR7 incident is part of a larger, dangerous trend of celebrity-fueled hype. The scam follows a similar pattern seen with the launch of the YZY token by Ye (formerly Kanye West), which also saw its market cap skyrocket before a dramatic crash

This new landscape shows how celebrity hype can be instantly monetized and then liquidated, regardless of a token’s underlying purpose.

The choice of Solana for these scams is no accident; its low transaction fees and high speed make it a prime environment for speculative trading and quick pump-and-dump schemes.

Final Thoughts

The CR7 “rug pull” serves as a stark reminder of the risks inherent in the memecoin market. The decentralized nature of crypto, while offering freedom, also provides a fertile ground for scams that capitalize on fear of missing out (FOMO) and unverified rumors.

While the world of crypto offers incredible opportunities, this event highlights the critical importance of a simple rule: do your own research, ignore the hype, and never invest based on unconfirmed social media posts, no matter how famous the person they claim to represent.

Frequently Asked Questions

What is a “rug pull” in crypto?
A “rug pull” is a scam where a project’s developers or promoters launch a token, drive up its price, and then sell off their holdings, causing the price to crash and leaving investors with losses.

Why was the CR7 token considered a scam?
The CR7 token was not officially endorsed by Cristiano Ronaldo, and its rapid 98% price crash immediately after a massive pump is a textbook example of a fraudulent “rug pull” scheme.

How can investors avoid “rug pull” scams?
Investors should be cautious of projects with anonymous teams and unverified claims. Always check for official announcements from the celebrity or company and be skeptical of rapid, influencer-driven pumps.