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Cardi B recently reignited interest in the WAP memecoin, causing its price to skyrocket by 100% before a sharp market cap collapse. On June 3, the rapper promoted the Wet Ass and Pussy (WAP) token on X, sharing its contract address and stating, “WAP is back. Even wetter than last time.” This single post spurred a surge in WAP’s price from $0.0011 to an intraday high of $0.0022.
WAP Token’s Brief Surge and Sudden Collapse
The initial excitement surrounding Cardi B’s post propelled WAP’s market capitalization to a peak of $2.5 million. However, the momentum didn’t last long. Within minutes, the market cap plummeted to a mere $139,000, leaving many investors questioning what went wrong.
According to an on-chain analysis, several wallets that had accumulated WAP tokens five days before the rapper’s post took advantage of the price spike to sell off their holdings. These early investors secured profits of up to 10 times their initial investment, triggering the token’s rapid decline.
“The token went from $2.5M to $139K a couple of minutes after the tweet,” said a crypto analyst on X, highlighting the coordinated dump.
A History of Volatility for WAP
This isn’t the first time WAP has experienced a dramatic pump-and-dump cycle. Back in October of the previous year, Cardi B had also promoted the memecoin, causing its market cap to soar to $40 million before crashing below $200,000. At the time, blockchain security firm PeckShield flagged the token for potential malicious activity, raising concerns about its legitimacy.
Despite the warnings, some investors were drawn in again during this latest promotion, only to face similar losses. Notably, Cardi B reportedly still holds a significant portion of the token’s supply, which has fueled accusations of market manipulation.
Community Reactions and Criticism
The crypto community was quick to criticize the rapper’s involvement in WAP’s promotion. Patrick Schmitt, a prominent crypto commentator, called out those who invested in the token again, stating:
“If you fell again for Cardi B’s WAP scam, well deserved! You will never learn!”
On-chain investigator ZachXBT also weighed in, hinting that Cardi B’s renewed promotion of WAP might be financially motivated. He commented directly on her post, saying, “POV you might owe millions,” referencing her ongoing legal and financial disputes.
Lessons for Crypto Investors
The WAP memecoin saga serves as a cautionary tale for investors, particularly beginners who may be drawn to the hype surrounding celebrity-endorsed tokens. Here are some tips to avoid falling victim to pump-and-dump schemes:
- Do your research: Investigate the token’s fundamentals, team, and history before investing.
- Be cautious of celebrity endorsements: Promotions by public figures often lack transparency and may be financially motivated.
- Monitor wallet activity: On-chain analysis tools can help identify suspicious accumulation patterns.
- Invest only what you can afford to lose: Memecoins are highly volatile and speculative.
Final Thoughts
As the cryptocurrency market continues to grow, it’s important for investors to stay vigilant and avoid being swayed by the hype. The WAP memecoin’s recent price surge and subsequent crash highlight the risks associated with speculative tokens and the influence of celebrity endorsements.
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