
The UAE has recently strengthened its regulating stance under stricter supervision of mobile signaling in the cryptocurrency sector. The latest development is the country’s investigation into the $WAP token, a company recognized by rapper Cardi B, whose popular songs share the same name. According to a notice on Solana-based tokens, the UAE is exploring potential securities violations.
The UAE’s Securities and Commodity Authority (SCA) has launched an investigation into crypto tokens suspected of it, which could be part of a pump and point drop program, awaiting unfolding. SCA is notified of the “famous Dubai Venture Capital Company” and related UAE investors notification tokens.
WAP Token and the skepticism surrounding it
According to Coingecko, WAP tokens take animated cats as mascot, belonging to the Memecoin category, emitting billion tokens. While the exact release date for the token is not yet clear, its official X page was created this September.
Cardi B, who has more than 35 million followers on X, has started promoting $WAP tokens on her social media platform in recent weeks. On October 8, she shared a promotional position and wallet address.
According to Cointelegraph, the wallet address posted by the WAP page is linked to multiple crypto scams, blockchain investigators named after Wazz.
Incredibly incredible how the coin basically dies after three days, everyone is frustrated $ WAP at the same time
It is also surprising that before this, a large number of tokens were sent from the sniper wallet ($50-100k+ per wallet) pic.twitter.com/2ntc1ufkvs
-Wazz (@WazzCrypto) October 13, 2024
Soon after, blockchain data platform Bubblemaps claimed that, hours after its release, suspected of abandoning WAP tokens worth $500,000 (approximately Rs 42 crore). Bubblemaps also said that WAP tokens are bundled with a large amount – which could allow buyers to buy multiple assets in a single transaction.
These factors add red flags to investors and blockchain watchdogs, suggesting that Memecoin may be problematic.
UAE’s position on WAP tokens
The SCA said in the notice that the promoters of the token, including Cardi B, have hired a network of paid people who have obtained the token for free through undisclosed financial arrangements.
According to SCA, “A preliminary investigation shows that insiders associated with the $WAP token and major opinion leaders of various paid paying are planning clear pump and dump plans. The plan involves artificially exaggerating the price of swaps through strategic promotions , and then systematically sell its holdings, causing huge financial losses to unsuspecting retail investors.”
UAE authorities have teamed up with Bubblemaps to infer that the token violates U.S. and UAE securities laws.
As of now, Cardi B has not responded to development.
Earlier this week, Dubai’s Virtual Assets Regulator (VARA) issued a stop order against seven cryptocurrency entities to operate their business without the need for the approval required.