Waka Flocka Flame's New Cryptocurrency FLOCKA Embroiled in Insider Trading Accusations
Summary:
American rapper Waka Flocka Flame's newly launched cryptocurrency, FLOCKA, is surrounded by controversy as insider trading allegations surface. Analysts observed questionable trading activity involving a wallet controlling 40% of the total coin supply promptly after the launch. Past engagements in dubious crypto projects and partly paid Ethereum promotions add weight to the accusations. Flame's statement about studying cryptocurrency since 2001 has also drawn criticism considering Bitcoin, the first modern cryptocurrency, was only invented in 2008.
Prominent American hip-hop artist Juaquin James Malphurs, widely known by his stage name Waka Flocka Flame, launched his cryptocurrency FLOCKA on June 17. However, accusations of insider trading surrounded the release almost immediately. Observers pointed to questionable trading activities involving a wallet that seemed to have acquired about 40% of the total coin supply and then distributed it among numerous other wallets right after the currency's introduction.
ZachXBT, a respected analyst of blockchain activities, brought this questionable wallet activity to light in a post released soon after the launch of FLOCKA. He pointed out that the involved wallet was quickly utilized to distribute approximately 40% of the total coin supply to different wallet addresses, implying an intentional manipulation of the market.
Analytical platform Bubblemaps, specialized in on-chain visuals, added to the controversy by noting "significant insider activity" after nearly half of the coin supply was swiftly nabbed prior to the official announcement by Waka Flocka Flame. Nicolas Vaiman, the CEO of Bubblemaps, criticized celebrities' growing involvement in the world of cryptocurrency without proper knowledge or understanding. He noted that nearly half of FLOCKA’s supply was held by one wallet at 8 am CET. Within just 30 minutes, this supply was dispersed across 60 different wallets.
ZachXBT highlighted Waka Flocka Flame's past engagements in dubious cryptocurrency endeavours and undisclosed paid Ethereum promotions in 2021 and 2022. Flame claimed to have been "studying crypto since 2001," a statement that raises eyebrows given the fact that the genesis of modern cryptocurrency, Bitcoin, wasn’t until 2008.
Moreover, an observer pointed out that Flame didn’t reveal the contract address for FLOCKA until after the coin achieved a market cap of $5 million. This left some to question whether popular crypto influencers were behind this move.
Published At
6/17/2024 12:53:00 PM
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