Rapper Cardi B Launches meme coin 'WAP' on Solana
Rapper Cardi B has recently made headlines for releasing a meme coin called Wet Ass Pussy (WAP), inspired by her hit 2020 song with Megan Thee Stallion. The launch of WAP on Solana saw significant activity, but it also sparked controversy and criticism from some in the crypto community.
Insider Dumping and Market Cap Fluctuation
According to on-Chain Analytics company Bubblemaps, 60% of the total supply of WAP was purchased by insiders at launch, who quickly dumped $500,000 within 12 hours. The meme coin's market cap surged to $34 million shortly after its release, driven by a post on Cardi B's Twitter account boasting 35.6 million followers. However, the market cap has since fallen to $21 million amid ongoing discussions about the project's legitimacy.
Iggy Azalea, another rapper with her own meme coin, publicly criticized WAP, labeling it as a "scam" and questioning Cardi B's involvement. In response, the WAP Twitter account shared a video featuring what appears to be Cardi B endorsing the project, aiming to dispel doubts about her connection.
Challenges for Celebrity Meme Coins
Celebrity meme coins have become increasingly popular, with many artists and influencers launching their own tokens. However, these projects often face scrutiny for their transparency, utility, and long-term sustainability. Azalea's MOTHER Token has been highlighted as a positive example of a celeb coin done right, as it continues to provide value and engagement for holders.
Bubblemaps' analysis revealed that a significant portion of WAP's supply was "bundled" at launch, indicating a centralized Ownership structure rather than widespread distribution among retail investors. This bundling strategy can create the illusion of broad token Ownership while concentrating control in the hands of a few insiders.
Concerns About Insider Profit and Market Manipulation
Insiders who acquired a large share of WAP at launch have already liquidated $500,000, generating profits of at least $250,000. However, the limited liquidity in the Solana pool presents challenges for further cashing out, as only $310,000 in funds are available for potential sales.
While insiders hold a substantial balance of $16.6 million, they must carefully navigate the market to avoid significant Price impacts from selling large quantities of tokens. Bubblemaps' analysts caution that gradual selling Strategies are common among celeb coin teams to avoid suspicion and maintain investor confidence.
Celebrity Meta in the Crypto Space
The trend of celebrity meme coins has gained momentum in 2024, with various prominent figures launching their tokens on blockchain Platforms like Solana. However, these projects have faced scrutiny for their Governance, tokenomics, and overall credibility, leading to debates within the community.
Controversies surrounding celebrity meme coins, including allegations of scams and insider trading, highlight the need for regulatory clarity and investor education in the Crypto space. As high-profile individuals endorse and promote these tokens, the responsibility to deliver value and transparency becomes paramount.
Conclusion
Rapper Cardi B's entry into the world of meme coins with WAP on Solana has generated intrigue and skepticism in equal measure. While the project's initial success attracted attention, questions about its long-term viability and market dynamics linger. As the crypto ecosystem continues to evolve, the emergence of celebrity-driven tokens underscores the importance of due diligence, risk awareness, and community engagement in navigating this innovative landscape.
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