American rapper Juaquin James Malphurs, known as Waka Flocka Flame, launched his cryptocurrency, FLOCKA, on June 17. However, the launch was quickly overshadowed by allegations of insider trading.

Suspicious Transactions Uncovered

Blockchain investigator ZachXBT brought attention to suspicious activity involving a wallet that acquired approximately 40% of the FLOCKA coin’s total supply before the official announcement. This wallet subsequently dispersed the coins to multiple addresses, raising concerns about market manipulation. In a post on social media platform X, ZachXBT highlighted the unusual transactions, suggesting deliberate attempts to influence the market.

Blockchain Analysts Raise Concerns

Onchain visual analytical platform Bubblemaps also noted significant insider activity. CEO Nicolas Vaiman criticized the trend of celebrities entering the crypto space without adequate knowledge and often engaging in suspicious on-chain activities. He pointed out that a single wallet held 40% of the supply at 8:00 am Central European Time, only to distribute it across 60 wallets within 30 minutes.

“This is no accident,” Vaiman asserted, emphasizing the orchestrated nature of the transactions.

Flame’s Controversial Past in Crypto

ZachXBT also highlighted Waka Flocka Flame’s previous involvement in promoting dubious crypto projects and undisclosed paid promotions on Ethereum in 2021 and 2022. Flame’s claims of having studied crypto since 2001, despite cryptocurrencies not existing until Bitcoin’s creation in 2008, have further fueled skepticism.

Adding to the controversy, one X user noted that Flame did not post the contract address for FLOCKA until the coin’s market cap reached $5 million, questioning the potential involvement of crypto influencers in the process.

Regulatory and Community Reactions

The allegations have sparked discussions about the need for greater transparency and regulation in the cryptocurrency space, particularly concerning celebrity-endorsed projects. As the investigation into the FLOCKA launch continues, the crypto community remains wary of potential manipulations and the ethical implications of celebrity involvement in digital assets.

The unfolding situation underscores the importance of vigilance and due diligence for investors navigating the volatile world of cryptocurrencies, especially those associated with high-profile individuals.