Cardi B’s WAP Token Endorsement Sparks Debate on Value
American rapper Cardi B’s recent endorsement of the meme token known as Wet A*s P*ssy (WAP) has triggered a significant upheaval in its market status. The fallout from her tweet saw WAP’s market capitalization nosedive dramatically from $2 million to approximately $150,000 in a matter of moments. The token initially soared to a peak price of $0.0020, only to plummet by over 90% shortly thereafter, stabilizing around $0.00019. This drastic decline wiped out nearly all of its gains for the week, much to the dismay of investors.
Celebrity Tweet Sparks Market Chaos
Reports indicate that Cardi B shared a specific wallet address on her official X account with the intriguing caption, “even wetter than last time.” The resulting flurry of activity in the cryptocurrency market was immediate and chaotic. Within minutes, the price of WAP token surged following the announcement but quickly settled back down, erasing billions in perceived market value.
Unusual Trading Patterns Revealed
Blockchain analysts detected irregularities in trading patterns soon after Cardi B’s post. Several wallets accumulated substantial amounts of WAP token just days before the announcement, and those holders rapidly distributed their tokens shortly after the tweet. This led to enormous returns—reportedly tenfold on their initial investments—heightening suspicions that an orchestrated pump-and-dump scheme might be at play.
“So today, @iamcardib remembered that she still held a large portion of the $WAP supply and decided to run another pump and dump,” noted crypto analyst @dethective in a tweet.
Data from blockchain analytics indicates that approximately five days prior to Cardi B’s tweet, strategic purchases were made, implying potential foreknowledge of her endorsement, which could have been leveraged by insiders.
A History of Controversy for WAP Token
This incident isn’t the first time WAP has been mired in controversy. Back in October 2024, Cardi B had previously promoted the token, leading to scrutiny from security firm PeckShield, which flagged it for possible malicious activities. Subsequently, the UAE’s Securities and Commodities Authority initiated an investigation based on investor complaints regarding fraud and potential market manipulation.
Despite a tumultuous past, it appears that investors rushed back in, drawn by celebrity endorsement but leaving many in a precarious position as the token’s value crumbled shortly thereafter.
Investor Sentiment and Market Implications
As of the last 24 hours post-endorsement, WAP’s value has plunged by an additional 80%, reverting to levels reminiscent of late May. Everyday traders who chased the hype found themselves facing substantial losses, while wallets that exploited the volatility garnered immense profits.
This rapid fluctuation serves as a stark reminder of the cryptocurrency market’s volatile nature—especially for those entering positions near a peak who may become trapped by sudden downturns.
Digital Asset Marketing Ethics
In a follow-up post, Cardi B attempted to quell the ensuing panic by affirming that her account had not been hacked, promising more engagement in the ‘$WAP space’ soon. However, this explanation did little to alleviate concerns. Critics argue it remains challenging to discern the artist’s genuine interest from a potential promotional strategy.
Experts have commented on the ethical responsibilities of public figures in marketing volatile assets. The consequences of their endorsements carry weight, impacting investor trust and market integrity.
The Implications of Celebrity Engagement in Cryptocurrency
- Market Volatility: Celebrity endorsements can lead to significant price fluctuations, as witnessed by the WAP case.
- Legal Accountability: Regulatory agencies are increasingly examining the role of influencers in fraudulent schemes.
- Investor Education: Vigilance is advised; the risks of trading in meme tokens should be thoroughly understood.
Ultimately, while celebrities can shine a spotlight on certain assets, their endorsements also raise ethical and financial concerns within the cryptocurrency landscape.
As the cryptocurrency market continues to evolve, the ramifications of celebrity influence underscore the necessity for diligent and informed trading practices among investors.