On Monday, American rapper Juaquin James Malphurs, known as Waka Flocka Flame, launched a new cryptocurrency called FLOCKA on the Solana blockchain. Announcing the launch to his 1.8 million followers on social media platform X, he shared the token’s details and declared the launch live in a brief video.
CA : $FLOCKA
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Contract : 9n8b1EXLCA8Z22mf7pjLKVNzuQgGbyPfLrmFQvEcHeSU pic.twitter.com/I9cj2Da8Yw
— Waka Flocka Flame 🔥 (@WakaFlocka) June 17, 2024
FLOCKA Coin Launch Causes Market Reaction
However, the rollout quickly attracted negative attention. Blockchain analyst ZachXBT identified suspicious transactions involving a wallet that accumulated about 40% of the token’s supply and distributed it across various wallets.
Interesting how a fresh wallet funded via exchange sniped ~40% of the supply and dispersed to alt wallets
Ag41gomG4npojqcZKSgEjP5myx3XSdHR5LVc4zTETC6Lhttps://t.co/8DFgWjb5ix
— ZachXBT (@zachxbt) June 17, 2024
The community on X responded with concern, warning about potential market manipulation. Onchain data suggested the token was active an hour before the official announcement, leading to user complaints about transparency. The price of FLOCKA subsequently dropped approximately 77% from its peak, sparking further discussions about the viability and integrity of celebrity-endorsed cryptocurrencies.
Broader Impact on the Crypto Community
This incident adds to the ongoing debate around “celeb coins,” a trend where celebrities launch their cryptocurrencies. Critics, including Ethereum co-founder Vitalik Buterin, voiced their concerns, noting the negative impact of leveraging celebrity status for such ventures without providing real value. Buterin stressed that financial tools should be used to support meaningful causes like healthcare and the arts. He believes these are more important than just seeking monetary gain.
Cryptocurrency scams have also become prevalent on platform X, where nearly $50 million is lost monthly due to account impersonation, as reported by Scam Sniffer. The platform’s verification service, introduced under Elon Musk’s ownership, has faced criticism for not adequately preventing these frauds. Recently, high-profile incidents involving fake promotions and hacked accounts have underscored the platform’s vulnerabilities.
Calls for Regulation Due to Market Manipulation
Yi He, the co-founder of Binance, also addressed a scam involving an impersonator on X. She clarified that she had not released any new memecoins and has asked Elon Musk to help resolve the issue. He warned users about the risks of clicking on links from unverified sources.
The launch of FLOCKA by Waka Flocka Flame underscores ongoing issues in the cryptocurrency space. These include market manipulation and ethical concerns surrounding celebrity-endorsed coins.. As the crypto community faces these issues, the call for stricter rules and clear transparency is strong. Leaders and regulators must tackle these problems to protect investors and ensure the market stays trustworthy.
Learn More
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Disclaimer: Cryptocurrency is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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