The cryptocurrency boom has created both opportunities and risks. While some investors have seen life-changing returns, others have been caught in devastating losses tied to celebrity-backed memecoins and risky digital assets. The most recent example is the WAP token promoted through Cardi B’s X Account and other social media platforms, which has become the subject of growing controversy and legal action.
Investors allege the $WAP token (also called the WAP meme token) was part of a classic pump and dump strategy, leaving buyers holding near-worthless coins after insiders cashed out. Now, a potential class action lawsuit is investigating whether investors can recover damages for losses linked to this alleged scheme.
The rise of WAP coin, the mechanics of pump-and-dump schemes, the role of social media influencers, connections to figures like Sahil Arora, Iggy Azalea, and Caitlyn Jenner, and the broader questions of market manipulation, securities laws, and regulation and oversight in the global cryptocurrency market.
What Is WAP Coin and Why Is It in the Spotlight?
In October 2024, rap superstar Cardi B introduced the WAP token through her official channels, presenting it as a fun meme coin inspired by her hit single “WAP.” The project immediately attracted attention across social media promotions and crypto communities, sparking investment from fans and speculators alike.
Yet warnings soon emerged. Analysts on Third-Party Sites and platforms like Yahoo Finance reported suspicious connections between the wallet address linked to the official website and prior rug pulls and rug-pull scams. Concerns grew when blockchain investigators tied the crypto wallet address to promoters with a history of launching questionable cryptocurrency ventures.
Adding to the speculation, discussions about Cardi B’s coin were fueled by the involvement of controversial promoters such as Sahil Arora, who had previously been linked to coins like the JENNER token promoted by Caitlyn Jenner. These patterns raised alarms in the wider crypto community about the integrity of the project.
Understanding Pump and Dump in the Crypto Market
The alleged WAP coin case centers on the concept of a pump and dump scheme. In the cryptocurrency market and stock trading, these schemes involve:
- Artificial Hype Creation – Insiders generate buzz through social media influencers, Instagram account promotions, and targeted social media platforms.
- Price Inflation – Early buyers and promoters manipulate trading volume on a trading platform, boosting market capitalization and creating an illusion of success.
- Liquidity Dump – Once the price peaks, insiders sell off their holdings in a rapid liquidity dump, leaving others to absorb the collapse.
- Price Crashes – Values fall drastically, wiping out retail investors and damaging overall market integrity.
Why WAP Coin May Fit the Pattern
- Heavy reliance on social media promotions from celebrities.
- Rapid spike in market valuation with no fundamental utility.
- Suspicious crypto wallet transactions suggesting coordinated insider trading.
- Collapse in value leaving retail investors with unrecoverable losses.
For regulators like the UAE Securities and Commodities Authority and other regulatory bodies, such cases highlight the urgent need for regulation and oversight in emerging cryptocurrency ventures.
Celebrity Influence and Meme Coins
The WAP controversy is part of a broader trend involving celebrity meme coins. High-profile personalities like Iggy Azalea, Caitlyn Jenner, and Cardi B have been linked to meme tokens promoted heavily across social media platforms. These celebrity cryptocurrency endorsements can drive enormous demand, but they often lack transparency or long-term stability.
Examples include:
- Iggy Azalea’s crypto projects linked to the Solana blockchain.
- Caitlyn Jenner’s JENNER token, which was questioned for its ties to promoters like Sahil Arora.
- Other meme coins tied to musicians, athletes, and influencers, many of which ended in Price Crashes or lawsuits.
The combination of celebrity-backed memecoins and risky cryptocurrency ventures highlights the dangers of investing based on personality-driven hype rather than fundamental blockchain technology or viable use cases.
Legal Issues and Securities Laws
For investors in WAP coin, the legal questions center on whether the project violated securities laws. If tokens like WAP coins qualify as securities, then offering them without proper registration may breach compliance rules enforced by regulators in the United States and abroad, including the Securities and Commodities Authority in the United Arab Emirates.
Key legal considerations include:
- Market Manipulation – Did insiders coordinate trades to inflate value?
- Unregistered Securities – Should WAP coin have been filed under U.S. or UAE Securities and Commodities Authority frameworks?
- Fraudulent Misrepresentation – Did promoters mislead buyers through social media promotions?
- Consumer Protection – Were fans unfairly lured into investments with no warnings about risks?
The answers to these questions will determine whether investors are entitled to damages in the ongoing investigation.
How Investors Can Join the Class Action
If you purchased a WAP coin and lost money, you may be eligible to participate in the class action. Documentation is critical, and you may need:
- Records from your crypto wallet or crypto wallet address.
- Screenshots from a trading platform showing purchase amounts.
- Confirmation emails, smart contract transaction IDs, or blockchain logs.
- Evidence of financial losses, including before-and-after market capitalization values.
Participation may allow you to collectively pursue damages and hold bad actors accountable.
Global Implications for Market Integrity
Cases like WAP coin highlight the fragility of the cryptocurrency market when unchecked hype, market manipulation, and rug pulls dominate headlines. Internationally, regulators from the United Arab Emirates, the U.S., and Europe are exploring stricter rules for cryptocurrency ventures to protect crypto adoption and ensure stronger market integrity.
Blockchain firms, Dubai-based venture capital groups, and other promoters of digital assets face increasing scrutiny. Future oversight may require transparent disclosures, stricter monitoring of celebrity cryptocurrency endorsements, and more accountability for social media promotions.
Beyond WAP: The Future of Meme Coins
The WAP case underscores a larger issue in the world of celebrity meme coins. While some meme tokens gain traction within the crypto community, most fade quickly after hype-driven launches. Without real-world utility or sustainable projects built on solid blockchain technology, meme coins risk becoming nothing more than speculative bubbles.
For investors, this case is a warning: do not confuse popularity with security. The cryptocurrency market can generate wealth, but it can just as easily destroy it, particularly when influenced by viral trends, social media influencers, and hype around celebrities.
Conclusion
The allegations surrounding Cardi B’s WAP token show the dangers of pump and dump schemes, market manipulation, and unchecked celebrity cryptocurrency endorsements. As investigations unfold, investors who lost money may find relief through the ongoing class action.
This case may also reshape how regulatory bodies handle cryptocurrency ventures, pushing for stronger regulation and oversight to protect both crypto adoption and investor trust in digital assets.
About Ted Law firm
Ted Law Firm, continues to support victims of crypto market misconduct, fraudulent cryptocurrency ventures, and harmful pump-and-dump schemes. We serve families across Aiken, Anderson, Charleston, Columbia, Greenville, Myrtle Beach, North Augusta and Orangeburg. By pursuing justice through class actions and investigations, Ted Law ensures that investors have a voice in defending their rights when faced with market manipulation and deceptive social media promotions. Contact us today for a free consultation
Attorney Ted Sink, founder of The Ted Law Firm, is a Yale, Stanford Business School, and Charleston School of Law graduate and former marketing executive who built a 7-figure law practice, earning millions for his clients. With experience in both law and advertising, Ted has been recognized in Forbes, Entrepreneur, and the ABA Journal. He speaks at industry conferences on marketing and law firm management, sharing insights from his unique background to help other firms grow. When not working, Ted enjoys traveling, diving, and dog-sitting golden retrievers.
