In a whirlwind debut that has sent shockwaves through the crypto community, Grammy-winning rapper Cardi B appears to have launched a meme coin named Wet Ass Pussy (WAP), inspired by her 2020 hit collaboration with Megan Thee Stallion. On October 8, 2024, insiders reportedly pocketed an impressive $250,000 within the first 12 hours of its launch, highlighting the volatile and often opportunistic nature of celebrity-backed cryptocurrencies.
A Quick Surge And A Sudden Drop
According to on-chain analytics firm Bubblemaps, 60% of WAP’s total supply was acquired by insiders at launch, who swiftly offloaded $500,000 worth of the coin. This rapid sell-off came just hours after the coin skyrocketed to a market cap of $34 million, coinciding with a promotional tweet from Cardi B to her 35.6 million followers. However, the exuberance was short-lived, as the market cap plummeted to $21 million, raising questions about the coin’s sustainability and the intentions behind its launch.
Controversy and Criticism
Not everyone is buying into the hype. Australian rapper Iggy Azalea, who has her own meme coin, publicly criticized the WAP project, labeling it a “scam” and mocking those who believe Cardi B is genuinely behind it. In a twist, the WAP Twitter account countered with a video that appears to show Cardi B endorsing the project, declaring, “WAP is live on Solana right now… we’re doing this shit right this time.” This statement seems to address the notorious history of abandoned celebrity meme coins, which have flooded the market with little to no support or utility for holders.
Bubblemaps also revealed that the “bundling” technique used at launch created multiple wallets that purchased the same token, giving the illusion of widespread interest. However, this method effectively centralizes control within a small group of insiders, allowing them to manipulate the supply and pricing dynamics. While these insiders have profited significantly, Chak Tse, an on-chain analyst, cautions that the remaining effective balance of $16.6 million cannot be easily liquidated. “There’s only $310,000 Solana liquidity in the pool,” he explained, meaning they will have to sell gradually as new investors enter the market to provide exit liquidity.
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The Celebrity Coin Trend
Celebrity meme coins have become increasingly common in the crypto landscape, with recent launches by figures like Caitlyn Jenner and Jason Derulo stirring controversy and skepticism. Jenner, for instance, claimed she was “scammed” by a crypto promoter who facilitated the launch of her coin, JENNER. Meanwhile, the controversial promoter Sahil Arora continues to make headlines for his involvement with various celebrity coins, including Cardi B’s WAP. Although he claims not to be directly involved with this latest project, he acknowledges his substantial profits from it.
A Cautionary Tale
The swift rise and fall of Cardi B’s WAP coin serves as a stark reminder of the volatile nature of meme coins, especially those tied to celebrity endorsements. As insiders continue to cash in, investors are left to grapple with the reality of a market rife with uncertainty and potential manipulation. Whether WAP will emerge as a legitimate player in the crypto space or fade into obscurity like so many before it remains to be seen, but one thing is clear: the world of celebrity meme coins is anything but predictable.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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