In a transfer signalling stricter oversight of the crypto sector, the UAE has lately intensified its regulatory stance. The newest growth sees the nation launching an investigation into the $WAP token, endorsed by rapper Cardi B, whose widespread tune shares the identical title. In keeping with a discover relating to the Solana-based token, the UAE is probing it for potential securities violations.
The UAE’s Securities and Commodities Authority (SCA) initiated a probe in opposition to the crypto token suspecting it may very well be a part of a pump-and-dump scheme ready to unfold. The SCA was alerted to the token by what its discover describes as a “distinguished Dubai-based enterprise capital agency” and related Emirati traders.
WAP Token and Suspicions Surrounding It
With an animated cat as its mascot, the WAP token falls beneath the memecoin class with a circulating provide of 1 billion tokens, as per CoinGecko. Whereas the precise launch date of this token stays unclear, its official X web page was created in September this yr.
In current weeks, Cardi B, who boasts over 35 million followers on X, started selling the $WAP token throughout her social media platforms. On October 8, she shared a promotional submit together with a pockets deal with.
As per CoinTelegraph, a blockchain investigator going by the title of Wazz flagged that the pockets deal with posted by the WAP web page was linked to a number of crypto scams.
Unbelievable how after the coin was mainly lifeless after three days, everybody suddently shilled $WAP on the similar time
Additionally wonderful that huge quantities of tokens had been despatched out from sniper wallets ($50-100Okay+ per pockets) hours simply earlier than that pic.twitter.com/2nTc1UFkvs
— Wazz (@WazzCrypto) October 13, 2024
Quickly after, blockchain knowledge platform BubbleMaps claimed that $500,000 (roughly Rs. 4.20 crore) value of WAP tokens had been suspiciously dumped hours after launch. BubbleMaps additionally stated that the WAP token is closely bundled – that might have patrons buy a number of models of the asset in a single transaction.
These elements have raised crimson flags amongst traders and blockchain watchdogs, suggesting the memecoin may very well be problematic.
UAE’s Stance on the WAP Token
In its discover, the SCA stated that the promoters of this token together with Cardi B have employed a community of paid people who obtained the tokens totally free by way of undisclosed monetary preparations.
As per the SCA, “Preliminary investigations counsel that the insiders related to the $WAP token, alongside numerous paid Key Opinion Leaders, are orchestrating a transparent pump and dump scheme. This scheme entails artificially inflating the value of SWAP by way of strategic promotions, adopted by the systematic sale of their holdings, thereby inflicting important monetary losses on unsuspecting retail traders.”
The UAE authorities have joined forces with BubbleMaps to infer that this token is violating securities legal guidelines of the US in addition to the UAE.
As of now, Cardi B has not reacted to the event.
Earlier this week, Dubai’s Digital Belongings Regulatory Authority (VARA) issued a cease-and-desist order in opposition to seven crypto entities for working their companies with out buying the required approvals.
