Home Business Celebrity-Backed Memecoin Faces Fraud Allegations

Celebrity-Backed Memecoin Faces Fraud Allegations

Another celebrity memecoin accused of fraud

A new memecoin, Flocka (FLOCKA), launched by American rapper Waka Flocka Flame, has been accused of insider trading. Before its public announcement, a large portion of the coins had been purchased by individuals close to the project.

Insider trading on new memecoin

According to allegations, the Flocka memecoin was heavily purchased by individuals close to the project before its public announcement, allowing them to profit significantly from its sale.

A blockchain researcher, ZachXBT, found that shortly after launch, one wallet purchased approximately 40% of all available coins and then redistributed them to other wallets.

“Interesting how a new exchange-based wallet took about 40% of the available supply and distributed it to other wallets,” ZachXBT said.

Trend of celebrities and crypto is increasing

The research company Bubblemaps also found significant activity from within, with 40% of the supply being grabbed before the coin was announced. The company’s director, Nicolas Vaiman, expressed criticism of the trend of celebrities entering the crypto world without proper knowledge.

Waka Flocka Flame has previously been involved in suspicious practices surrounding cryptocurrencies, with ZachXBT stating that he promoted dubious crypto projects in 2021 and 2022.

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