American rapper Waka Flocka Flame, also known as Juaquin James Malphurs, introduced his FLOCKA cryptocurrency on June 17. However, soon after its launch, accusations of insider trading emerged.
There were suspicions of unusual transactional activity involving a wallet that obtained approximately 40% of the coin’s total supply and then distributed it to multiple wallets shortly after the launch.
Blockchain investigator ZachXBT was quick to point out the questionable activities of the wallet in a post following the debut of FLOCKA. He indicated that the wallet address had rapidly transferred about 40% of the coin’s supply to various addresses, hinting at potential market manipulation.
Bubblemaps, an onchain analytical platform, also weighed in on the situation, describing the launch as having “significant insider activity” since 40% of the supply was acquired before Flame’s official announcement.
Bubblemap CEO Nicolas Vaiman expressed disapproval of the increasing trend of celebrities participating in the cryptocurrency realm. He highlighted a specific instance where one wallet held 40% of the supply at 8:00 am Central European Time, only to distribute it to 60 wallets within 30 minutes.
ZachXBT further mentioned Flame’s history of endorsing questionable crypto projects and engaging in undisclosed paid promotions on Ethereum in recent years.
In a post on X space, Flame claimed to have been studying crypto since 2001, despite cryptocurrencies not being introduced until Bitcoin’s creation in 2008. This discrepancy raised doubts among some X users, especially when Flame delayed sharing the contract address for FLOCKA until the coin’s market cap reached $5 million.
In other news, Elon Musk vows to ban Apple, Greenpeace advocates for Bitcoin’s Proof of Stake, and more in the latest issue of Hodler’s Digest from June 9 to June 15.