Yes it has been done.
Powdercoating would probably be the most durable though.
But if you decide to paint it... the main thing is to get the best paint adhesion possible with what you have to work with.
Blasting... probably the best way to rough up the surface, then go back with self etch primer, then paint. If you dont have access to blasting... the next best would be to use a sander to rough it up.
As far as the white... I would think it would look ok as long as your chain isnt dripping with oil. I also believe the paint will chip and wear off especially around the teeth. It would probably look better if you left paint completely off the teeth.