Around 40% of the coin’s total supply was scooped up before Waka Flocka Flame announced the launch.

American rapper Waka Flocka Flame, whose real name is Juaquin James Malphurs, recently launched his cryptocurrency, FLOCKA, on June 17. Almost immediately, allegations of insider trading surfaced, raising concerns about the legitimacy of the launch and the activities surrounding it.

Suspicious Activity and Allegations

Insider Trading Claims
Shortly after FLOCKA's launch, a well-known blockchain investigator, ZachXBT, flagged suspicious transactions involving a particular wallet. This wallet acquired about 40% of the total coin supply and then quickly dispersed these funds to multiple other wallets. The pattern suggested potential market manipulation and insider trading. ZachXBT described the activity on his social media:

“Interesting how a fresh wallet funded via exchange sniped ~40% of the supply and dispersed to alt wallets.”

Onchain Analysis and Celebrity Involvement
Bubblemaps, an onchain visual analytical platform, corroborated these suspicions by highlighting the significant insider activity. They noted that one wallet held 40% of the supply and distributed it across 60 wallets within 30 minutes after the coin's launch. Nicolas Vaiman, CEO of Bubblemaps, criticized the trend of celebrities entering the crypto space without adequate knowledge or ethical practices:

“Many former celebrities are trying to get a second life by jumping into crypto. Most of the time, they show a clear lack of knowledge about crypto while also being very suspicious onchain.”

Historical Context and Previous Controversies

Flame’s Previous Crypto Involvements
ZachXBT also pointed out Waka Flocka Flame's history of promoting dubious crypto projects and engaging in undisclosed paid promotions on Ethereum in 2021 and 2022. These activities have raised questions about his credibility and intentions within the cryptocurrency space.

Statements and Contradictions
Flame claimed during an X space discussion that he had been “studying crypto since 2001,” a statement met with skepticism given that cryptocurrencies were not conceptualized until Bitcoin's creation in 2008. Additionally, an X user questioned the timing of Flame's announcement of the contract address for FLOCKA, noting that it was only disclosed after the coin's market cap had already reached $5 million, hinting at potential premeditated actions to benefit insiders.

Conclusion

The launch of Waka Flocka Flame’s FLOCKA cryptocurrency has been marred by allegations of insider trading and market manipulation. The swift and suspicious distribution of a significant portion of the coin’s supply has raised red flags within the crypto community. This situation underscores the need for transparency and ethical practices, especially as more celebrities venture into the cryptocurrency market. The ongoing scrutiny and investigations will likely determine the future credibility and success of FLOCKA and similar celebrity-endorsed crypto projects.