Cardi B's WAP meme cryptocurrency price surge followed by another withdrawal of funds...once more.
Hop on the Wild Crypto Ride: The WAP Tokens' Meteoric Rise and Swift Fall
Cardi B's recent endorsement of the Wet Ass and Pussy (WAP) memecoin on platform X sent shockwaves through the crypto world. Her post, raring about the token's return and encouraging her followers to jump in, caused an unprecedented 100% surge in the token's price. However, this hype was brief, with the token's market cap crashing from a whopping $2.5 million to a mere $139K just minutes after.
On June 3, the celebrated rapper shared the WAP contract address with her massive following, declaring, "WAP is back. Even wetter than last time." This post pushed WAP's price from an opening rate of $0.0011 to an intraday high of $0.0022. But, as quickly as it rose, the price plummeted, leaving many investors scratching their heads.
According to X user @dethective, who scrutinizes the activities of Key Opinion Leaders (KOLs), the crash was orchestrated by crafty investors. These savvy traders had covertly amassed WAP tokens about five days prior to Cardi B's post and sold them off immediately afterward, netting a staggering 10X profit.
Remember FARTCOIN's Rollercoaster Ride? Another Crypto Crash Looms
The WAP token isn't new to massive price swings. In fact, it was previously promoted by Cardi B in October the previous year. That promotion briefly elevated the token's market cap to an astonishing $40 million before it crashed below $200,000. Security firm PeckShield even raised red flags about potential malicious activity associated with the token.
Crypto commentator Patrick Schmitt didn't mince words, calling out investors who jumped on the WAP bandwagon after the last crash, stating, "If you fell again for Ghetto Trash @iamcardib and her $WAP Scam, well deserved! You will never learn!"
On-chain sleuth ZachXBT took to X to comment on Cardi B's promotional post, stating, "POV you might owe millions," implying that the rapper's financial troubles with estranged husband Offset could be a motivating factor behind her continued promotion of the token.
Digging Deeper: The WAP Price Crash Unraveled
The price crash of the WAP memecoin can be attributed to multiple factors:
- Rapid Accumulation and Dumping
- Shrewd investors had accumulated WAP tokens about five days prior to Cardi B's endorsement.
- These investors sold off their holdings immediately after her post, pocketing profits of up to 10 times their investment and causing the price to slide.
- Previous Controversies and Security Concerns
- The WAP token was embroiled in past controversies and security issues.
- Despite these concerns, some investors ignored warnings and jumped aboard, only to face another crash.
- Market Speculation and Hype
- Cardi B's endorsement sparked significant market speculation, causing a sudden price surge.
- However, the hype was short-lived, indicating that the market was responding to celebrity influence rather than long-term value.
- Potential Financial Motivation
- Some speculate that Cardi B's continued promotion of the token might be financially motivated, given her ongoing financial disputes.
- This possible motive could erode trust in the token's legitimacy and stability.
Remember, the crypto world can be a wild and unpredictable ride. Always do your due diligence and carefully consider the risks before jumping into any investment opportunity.
- In the aftermath of Cardi B's recent endorsement of the WAP memecoin, many investors were left scratching their heads as the token experienced another meteoric rise and swift fall.
- The WAP token's latest crash was attributed to a combination of factors, including rapid accumulation and dumping, past controversies and security concerns, market speculation and hype, and potential financial motivation.
- According to on-chain sleuth ZachXBT, the WAP price crash could hint at financial troubles for Cardi B, as some speculate her continued promotion of the token might be financially motivated.
- Despite the controversies, some investors continue to flock to memecoins like WAP, fueled by celebrity endorsements, high market volatility, and the allure of crypto finance.
- As the world of finance and entertainment intertwine further, it's crucial for investors to exercise caution and fully understand the risks involved before dabbling in tokens associated with celebrities and entertainment-themed projects.
