Waka Flocka Flame, the American rapper, faced immediate scrutiny after launching his cryptocurrency, FLOCKA, on June 17, amid allegations of insider trading. Approximately 40% of the total coin supply was swiftly acquired by a single wallet before the official announcement and subsequently dispersed to multiple addresses shortly after the launch.

The suspicious transaction activity was first flagged by blockchain investigator ZachXBT in a post on X, highlighting how a newly funded wallet acquired a significant portion of FLOCKA tokens and quickly distributed them across alternative wallets, suggesting orchestrated market manipulation.

Bubblemaps, an onchain analytics platform, also weighed in on the situation, describing the launch as marked by "huge insider activity" following the acquisition of 40% of the token supply before any public announcement from Waka Flocka Flame.

Nicolas Vaiman, CEO of Bubblemaps, criticized the trend of celebrities entering the crypto space without adequate understanding, stating that many such celebrities show a lack of knowledge while their onchain activities raise suspicion.

During an interview with Cointelegraph, Vaiman pointed out that within 30 minutes of the launch, the wallet holding 40% of the supply had diversified its holdings across 60 different wallets, further raising concerns about the token's distribution and fairness.

ZachXBT also noted previous instances where Waka Flocka Flame had been associated with promoting questionable crypto projects and engaging in undisclosed paid promotions related to Ethereum in 2021 and 2022.

Responding to criticisms, Waka Flocka Flame defended his involvement in cryptocurrencies, claiming a long-standing interest in the field since 2001, although cryptocurrencies, as known today, emerged after Bitcoin's introduction in 2008.

Concerns were also raised regarding the timing of the contract address release for FLOCKA, which was made public only after the token's market capitalization had already reached $5 million. This delay prompted speculation among X users about the involvement of other crypto influencers in the project's promotion.

As the crypto community continues to scrutinize FLOCKA's launch, questions persist about transparency, fairness, and regulatory compliance in celebrity-backed cryptocurrency ventures.