Cardi B’s Meme Coin in Hot Water: UAE Begins WAP Investigation

• A Dubai-based VC firm voices its suspicion about Cardi B’s WAP token.
• Cardi B doubled down on the legitimacy of WAP in a video after launch.
• The downward price rodeo for WAP solidifies pump dump allegations.

Cardi B, an American rapper garnering over 31 million streams on Spotify, recently surprised her X audience with an elaborate campaign to promote a new crypto token. The Solana-based WAP token, which takes inspiration from the song of the same name, has been drowning in ambiguity since day one.

“Her Name Is Pump Dump”

Cardi B’s fans on X have been confused since witnessing a flurry of cryptocurrency-related messages. Eventually, on October 8, 2024, a Solana smart contract address for a meme token called WAP emerged. The rapper quickly denied claims of her X account getting hacked.

Later that day, she posted a video urging her followers to join the WAP Telegram channel, captioning the video: “A new boss in town $WAP, Join on TG, only quality pusssss 💦” The Grammy award winner doubled down on WAP’s legitimacy, sparking tremendous backlash.

Research by Bubblemaps’ blockchain intelligence platform has revealed condemning evidence that insiders have manipulated the WAP token, controlling 60% of the supply. A week ago, Bubblemaps estimated a $500K liquidity dump, but now the celebrity meme coin has piqued the interest of legal institutions.

UAE Calls SEC to Probe WAP

The Securities and Commodities Authority of the United Arab Emirates came through with a legal complaint courtesy of a local venture capital firm and Emirati investors. In their complaint, the UAE’s top financial authority cites that the WAP token is a carefully orchestrated pump-and-dump scheme.

The UAE SCA is requesting cooperation from the U.S. Securities and Exchange Commission (SEC) to identify the list of KOLs and social media influencers who have contributed to the maliciously orchestrated promotion of WAP tokens . X Corp, formerly known as Twitter, has been asked to provide IP addresses and relevant chat logs.

As the emergency request for an urgent investigation into this potential pump-and-dump scheme unfolds, the WAP token has crashed by over 30% in 24 hours. WAP sharply fell over 63% in two days, from its highest point of $0.03862 to $0.01444 now, marking a $21 million liquidity crunch, according to CoinGecko .

On the Flipside

• The urgent investigation into Cardi B’s WAP coin comes from one of the world’s most crypto-friendly countries, which hosts several industry leaders.
• The United Arab Emirates (UAE) strives to be at the forefront of crypto adoption and could set a legal framework for fair crypto endorsements in the future.

Why This Matters

Celebrity meme coins are a recurring pattern in 2024, with most celeb coins witnessing the same fate as rug pulls or scams. This reminds traders to act with caution when famous people foray into crypto.

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