Coinspeaker
Crypto Community Voices Criticism over Rapper Waka Flocka Flame’s New Celebcoin
American rapper Juaquin James Malphurs, widely known as Waka Flocka Flame, sparked controversy within the cryptocurrency community with the launch of his new meme coin FLOCKA on June 17.
Almost immediately following its debut, accusations of insider trading surfaced, clouding the coin’s initial reception.
Suspicious Transactions and Market Manipulation
Shortly after FLOCKA’s launch, the on-chain analytics platform Bubblemaps revealed that an unknown wallet rapidly acquired around 40% of the total FLOCKA supply. These funds were dispersed to multiple wallets, fueling allegations of market manipulation and insider trading.
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
It was also revealed that Waka Flocka Flame had not disclosed the contract address for FLOCKA until after the coin’s market capitalization had exceeded $5 million. This delayed disclosure drew sharp criticism from crypto enthusiasts, who questioned the fairness and transparency of the launch process.
One user on a prominent crypto forum criticized the timing, stating, “Releasing the contract address after the launch and during the pump phase is a fundamental failure.”
Defensive Claims and Historical Accuracy
Popular blockchain investigator ZachXBT had previously commented on Flame’s post, highlighting the rapper’s past involvement in promoting questionable crypto projects and undisclosed paid promotions on Ethereum during 2021 and 2022.
In response to backlash, Waka Flocka Flame defended himself during an online discussion, claiming to have been studying cryptocurrencies since 2001. However, this assertion raised eyebrows among users, as Bitcoin, the pioneering cryptocurrency, was not introduced until 2008, leading to skepticism about the rapper’s understanding of the industry’s history.
Many users argue that the rapper’s memecoin launch is a bid to attract extra attention, aside from generating attractive returns from insider trading.
Rise of Celebrity Memecoins
FLOCKA adds to the growing list of celebrity-endorsed meme coins, a trend that has gained momentum in the past few weeks. High-profile figures like Iggy Azalea, Caitlyn Jenner, and Andrew Tate have all launched their meme coins, each project quickly attracting both attention and controversy.
These celebrity-backed coins often leverage their creators’ fame to attract investors. However, many of these launches have been shadowed by allegations of insider trading, market manipulation, and lack of transparency. Critics have pointed out that these projects are often more about capitalizing on fame than providing genuine value to the crypto community.
Notably, Ethereum co-founder Vitalik Buterin has condemned the financialization of meme coins by celebrities, arguing that these projects often prioritize profit over substance. Buterin has laid out criteria for a celebrity crypto project to earn his respect: it should contribute to a public good, significantly impact society, and support charitable or artistic endeavors that benefit others.
Despite their poor reputation, celebrity-backed meme coins have achieved massive valuations, indicating a high-risk appetite among many crypto traders
Crypto Community Voices Criticism over Rapper Waka Flocka Flame’s New Celebcoin
