{"id":96435,"date":"2024-10-14T18:36:18","date_gmt":"2024-10-14T22:36:18","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=96435"},"modified":"2024-10-14T18:37:30","modified_gmt":"2024-10-14T22:37:30","slug":"uae-calls-for-probe-into-cardi-bs-wap-coin","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/uae-calls-for-probe-into-cardi-bs-wap-coin\/","title":{"rendered":"UAE Calls for Probe Into Cardi B\u2019s WAP Meme Coin"},"content":{"rendered":"\n

The UAE Securities and Commodities Authority <\/a>has initiated a probe into $WAP, a\u00a0Solana-based token\u00a0promoted by celebrities such as Cardi B.<\/p>\n\n\n\n

\"UAE<\/figure>\n\n\n\n

The United Arab Emirates' Securities and Commodities Authority (SCA) has initiated an investigation into alleged securities violations involving the cryptocurrency $WAP, a Solana-based token promoted by prominent celebrities like Cardi B. <\/p>\n\n\n\n

The probe follows a formal complaint from a Dubai-based venture capital firm and local Emirati investors, accusing the token\u2019s promotion and trading of fraud and market manipulation.<\/p>\n\n\n\n

Cardi B\u2019s Crypto Endorsement Under UAE Scrutiny<\/h2>\n\n\n\n

The SCA\u2019s investigation into possible securities violations centers around the Cardi B-endorsed cryptocurrency, $WAP. <\/p>\n\n\n\n

The rapper shared a crypto wallet address while promoting $WAP tokens on her official X account, which analysts have linked to a notorious figure involved in previous cryptocurrency scams. <\/p>\n\n\n\n

Cardi B\u2019s post featured a promotional video of the $WAP mascot\u2014an animated cat\u2014alongside the wallet address, raising concerns about the endorsement's legitimacy and the risks posed to investors.<\/p>\n\n\n\n

The investigation has focused on allegations that $WAP was part of a \u201cpump and dump\u201d scheme. <\/p>\n\n\n\n

The SCA claims that promotional efforts by key opinion leaders and insiders manipulated the token\u2019s value, with some influencers reportedly being paid to inflate $WAP\u2019s price across various social platforms. <\/p>\n\n\n\n

This method is not unprecedented; for instance, the FBI recently used a fake cryptocurrency called NexFundAI to expose a similar pump-and-dump operation.<\/p>\n\n\n\n

Reports suggest that influencers involved in promoting $WAP received large amounts of the token for free. <\/p>\n\n\n\n

Analytics firm Bubblemaps noted that bundled token supplies and strategic sales artificially drove up the price before insiders sold their holdings, leaving retail investors to bear the losses. <\/p>\n\n\n\n

Social media accounts are alleged to have played a role in coordinating efforts to manipulate the token\u2019s market valuation.<\/p>\n\n\n\n

UAE Investigates Securities Violations in Crypto Promotion<\/h2>\n\n\n\n

The SCA's investigation has determined that $WAP's promoters and traders may have violated multiple UAE and U.S. securities laws, specifically concerning market manipulation and failure to disclose financial interests. <\/p>\n\n\n\n

If proven, these violations could lead to harsh penalties, including heavy fines, trading bans, and possibly criminal charges.<\/p>\n\n\n\n

UAE is, on the other hand, very crypto-friendly. Recently, OKX<\/a>\u00a0announced\u00a0that it officially launched its trading platform in the United Arab Emirates to all retail and institutional investors after acquiring a full operating license.<\/p>\n\n\n\n

The cryptocurrency market often sees tokens promoted by celebrities skyrocket in value, creating opportunities for manipulation that can be difficult for regulators to catch in real-time.<\/p>\n\n\n\n

As part of its probe, the SCA has requested information from X regarding accounts promoting $WAP and is seeking collaboration with U.S. regulators, such as the SEC, to investigate the allegations thoroughly.<\/p>\n\n\n\n

A Push for Stronger Oversight<\/h2>\n\n\n\n

The investigation into $WAP highlights ongoing issues in the regulation of the cryptocurrency market. <\/p>\n\n\n\n

Celebrities like Cardi B and social media influencers frequently endorse tokens, which can quickly gain momentum and become vulnerable to pump-and-dump schemes. <\/p>\n\n\n\n

These schemes not only harm individual investors but also erode public trust in digital assets.<\/p>\n\n\n\n

This case may lead to tighter regulations on public figures' social media promotion of cryptocurrencies. <\/p>\n\n\n\n

It also raises concerns about the responsibility of social media platforms in controlling the spread of fraudulent product promotions. <\/p>\n\n\n\n

As regulators dig deeper, there could be a push for increased oversight of cryptocurrency markets to protect market integrity.<\/p>\n\n\n\n

Moreover, this case could set a precedent for future situations involving celebrity crypto endorsements, encouraging influencers to exercise more caution when promoting digital assets.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The UAE Securities and Commodities Authority has initiated a probe into $WAP, a\u00a0Solana-based token\u00a0promoted by celebrities such as Cardi B. The United Arab Emirates’ Securities and Commodities Authority (SCA) has initiated an investigation into alleged securities violations involving the cryptocurrency $WAP, a Solana-based token promoted by prominent celebrities like Cardi B. The probe follows a […]<\/p>\n","protected":false},"author":56,"featured_media":96438,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[22351,2052,18450],"class_list":["post-96435","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-celebrity-crypto","tag-crypto-fraud","tag-pump-and-dump"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/10\/UAE-Calls-for-Probe-Into-Cardi-Bs-WAP-Meme-Coin.webp","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/96435","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/56"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=96435"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/96435\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/96438"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=96435"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=96435"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=96435"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}