Originally stretched out for rapper Waka Flocka Flame’s FLOCKA token launch on June 17th, the red carpet of cryptocurrencies swiftly turned into a red flag for investors. The new coin has been shadowed by suspicious pre-launch behaviour, which has led to claims of insider trading and questions around celebrity participation in the erratic cryptocurrency market.
40% FLOCKA Disappears Before Takeoff
First to raise the alert were blockchain detectives. A single wallet swooped in and devoured an amazing forty percent of the whole token supply just before FLOCKA’s official release.
Because it suggested possible market manipulation, this pre-launch land grab made crypto fans anxious. The story grew more convoluted when the same wallet started quickly spreading its FLOCKA contents throughout a network of anonymous accounts just after debut.
“Interesting how a fresh wallet funded by exchange snipped ~40% of the supply and distributed to alt wallets,” tweeted ZachXBT, a well-known blockchain researcher. Token rapid fire distribution raised questions about someone with inside knowledge using the market to their benefit.
Huge insider activity on $FLOCKA 🚨
Wallet Ag41go sniped 40% of the supply at launch and spread it into 60+ wallets, before Waka Flocka (@WakaFlocka) made the announcement.https://t.co/9tBAFwQWef https://t.co/xq5yddGbDv pic.twitter.com/UyNLPVLqWz
— Bubblemaps (@bubblemaps) June 17, 2024
Sites like Bubblemaps, which focus on visualising blockchain transactions, mirrored similar worries. “Huge insider activity,” said Bubblemaps’ CEO, Nicolas Vaiman, emphasising the pre-launch acquisition.
Vaiman went further, denouncing the rising tendency of celebrities entering cryptocurrencies without a strong knowledge of the underlying technology or market dynamics.
Waka Flocka Flame’s Past Raises Eyebrows
Not the only dark cloud hovering over FLOCKA was insider trading’s shadow. Past transgressions with the cryptocurrency realm by Waka Flocka Flame begged questions about his motives.
Reports state that the rapper has a history of endorsing dubious crypto projects, usually failing to reveal that they were sponsored endorsements. Many of this pattern of behaviour made many wonder whether FLOCKA was really another tool for a fast profit instead than a real cryptocurrency with long-term value.
Crypto Celebrities: Hype Or Expertise?
The FLOCKA scandal brings the discussion about celebrity participation in the bitcoin field back alive. Critics contend that while celebrity sponsorships surely create interest and draw fresh investors, this sometimes comes at the price of investor knowledge and market stability.
Vaiman contends that these stars lack the knowledge and experience required and highlights the possibility of unethical behaviour driven by a need for fast profits as a result of misguided advertisements.
Featured image from Getty Images, chart from TradingView