The launch of Cardi B’s WAP memecoin has sparked controversy as crypto investigators traced the token’s origins to a wallet linked with past scam projects and “rug pulls.”
On October 8, Cardi B’s official X account promoted WAP, a cat-themed memecoin, by sharing a video and a wallet address. This wallet, however, was flagged by blockchain investigators for its connection to fraudulent projects. Wazz, a pseudonymous blockchain sleuth, identified that the wallet linked to WAP had a history of scams, raising concerns about the legitimacy of the token.
Crypto security firm PeckShield speculated that Cardi B’s account might have been hacked, but Wazz pushed back, suggesting that the WAP token launch was pre-planned. Cardi B had shared a series of cat-related posts prior to the announcement, reinforcing the idea that the token’s reveal wasn’t the result of a hack.
Despite these claims, many within the crypto community are wary, given the frequent association of celebrity-endorsed tokens with scams. According to BubbleMaps, a blockchain data analysis platform, 60% of the WAP token supply was concentrated in a few wallets at launch, and around $500,000 worth of tokens were quickly dumped within 10 hours. This raised further suspicions about the token being part of a “rug pull” scheme, where early investors are left with worthless tokens after a sudden sell-off by the creators.
BubbleMaps also revealed that roughly 15 crypto addresses involved in the WAP launch were funded by the same exchange wallet, further fueling concerns. These wallets then transferred their WAP holdings across multiple addresses to hide their activity.
Adding fuel to the fire, fellow rapper Iggy Azalea, who promotes her own memecoin called Mother Iggy (MOTHER), criticized Cardi B’s WAP token launch, suggesting that the controversy could damage the reputation of celebrity-backed tokens even further.
In the wake of this, many are urging caution when investing in tokens associated with celebrities, especially given the increasing number of scams in the space.
Summary Review: Cardi B’s launch of the WAP memecoin has raised significant concerns after blockchain investigators linked its associated wallet to previous scams. Despite initial speculation about a potential hack of Cardi B’s account, evidence suggests the launch was planned, given her prior promotional posts. The cryptocurrency community is wary, as about 60% of the token supply was concentrated at launch, and a large amount was quickly sold off, indicating a possible “rug pull” scheme. With growing skepticism about celebrity-endorsed tokens, experts advise caution for potential investors in this space.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
