- UAE SCA seeks SEC probe into $WAP token for securities violations.
- WAP promoted by Cardi B allegedly involved in a pump-and-dump scheme.
- Investigators pinpoint KOLs, insiders in orchestrating price manipulation.
The UAE Securities and Commodities Authority (SCA) officially asked the U.S. Securities and Exchange Commission (SEC) to investigate the WAP cryptocurrency token promoted by Cardi B on the Solana blockchain, alleging potential securities violations.
The WAP token, heavily promoted by Cardi B on X (formerly Twitter), has been connected to an alleged pump-and-dump scheme potentially involving insiders. The SCA’s request follows a tip-off from Dubai-based venture capital firms and Emirati investors who raised concerns about rapid price manipulation. The token’s trading volume experienced a sharp surge and subsequent drop within a short period, suggesting coordinated fraud.
Dubai Venture Capital CEO Highlights Influencer Manipulation
A tweet by Syed Sameer, CEO of a Dubai-based venture capital firm, provided more details about the complaint, explaining how influencers, key opinion leaders (KOLs), and insiders might have manipulated WAP’s price for personal gain through unethical financial arrangements. The SCA’s investigation centers on this alleged coordinated manipulation between influencers and those involved in promoting the token.
The WAP token received extensive promotion through X, attracting considerable attention. Promotions were led by paid KOLs, insiders, and celebrities like Cardi B, who allegedly received undisclosed financial compensation in the form of tokens.
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Investigations showed that the scheme artificially inflated the price of WAP before promoters and insiders sold their holdings, resulting in substantial losses for retail investors. Evidence from Bubblemaps and WazzCrypto points to unethical bundling of supply and price manipulation. Key accounts linked to the scheme include KOLs such as @The__Solstice, @KookCapitalLLC, and @WazzCrypto, all of whom participated in the alleged pump-and-dump activity.
The SCA claims these actions violate both U.S. and UAE securities laws and is seeking cooperation from regulators and X to track IP addresses and logs of implicated promoters. The SCA’s request, based on evidence of coordinated manipulation, underscores the risks of unregulated crypto promotions by celebrities and social media influencers.
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