The recent incident involving the CR7 token on the Solana blockchain has revealed serious issues in the cryptocurrency sphere, with a scam token surging to $143 million before collapsing.
Analysis of Malicious Developer Actions
The CR7 token came under scrutiny due to anonymous developers and crypto influencers who leveraged rumors of Cristiano Ronaldo's endorsement. Sources confirmed that no links exist between Ronaldo and the token. Influencers created hype around the token, leading to its rapid rise followed by quick sell-offs.
Financial Impact and On-Chain Data
At its peak, the CR7 token reached a market cap of $143 million. Some users managed to extract $50,000 in profits during the scam. According to analytics firm Bubblemaps, liquidity manipulations were coordinated, allowing organizers to profit rapidly while others faced losses. Importantly, this event did not affect larger tokens, such as ETH or BTC.
Community and Investor Reaction
The cryptocurrency community reacted to the incident with a temporary spike in interest in meme tokens, but after the scam, interest quickly waned. Deleted posts on Twitter and Telegram left little evidence of the prior hype, leading to a sharp decline in trust towards the CR7 token. Affected investors used Solana-based decentralized exchanges, but major assets like ETH and BTC were largely unaffected.
The CR7 token incident highlights the necessity for caution among traders in the meme token domain, especially in light of similar scandals, such as the YZY token debacle. This serves as a reminder of the importance of due diligence and careful approach to investing in celebrity-associated cryptocurrencies.
