The UAE authorities have launched an investigation into the $WAP token, promoted by rapper Cardi B. Allegations of fraudulent activities surrounding this token once again raise the issue of celebrity influence on the memecoin market.

Investigation into $WAP Token

Recently, American rapper Cardi B has come under scrutiny for allegedly promoting a dubious meme coin known as $WAP. Her post on Twitter included a crypto wallet address allegedly tied to a known scammer. In light of this, the UAE regulators have begun an investigation into potential securities law violations concerning the $WAP token. The inquiry was initiated after a formal complaint by a Dubai-based venture capital firm and local investors, who accused the $WAP team of market manipulation and fraud in the promotion, support, and trading of the token.

$WAP's Decline and Intrinsic Issues

Last week, PeckShield issued a warning about a possible breach of Cardi B's Twitter account, urging users to exercise caution with any associated links or addresses. Fellow rapper Iggy Azalea also voiced her concerns about $WAP's legitimacy. The token's value has plummeted, now standing at $0.01282, according to CoinGecko data, with significant decreases: an 8.7% drop in the last hour and a 39.5% drop in the past 24 hours.

Dangers of Celebrity-Endorsed Memecoins

The investigation into $WAP spotlights ongoing issues in crypto market regulations. Celebrities and influencers frequently promote tokens, leading them to gain traction and thus become targets for pump-and-dump schemes. Such infractions undermine investor trust in digital assets. These projects often face criticism for lacking substantial development, resulting in skepticism about their authenticity and objectives.

Celebrity involvement in cryptocurrency promotions raises significant concerns, particularly in light of the recent $WAP investigation. Regulations and laws must keep pace with the industry's evolution to protect investors and reinforce trust in digital assets.