The cryptocurrency red carpet rolled out ahead of rapper Waka Flocka Flame’s FLOCKA token launch on June 17, but it quickly turned into a red flag for investors. Suspicious pre-launch activities have cast a long shadow over the modern coin, sparking accusations exploit of confidential information and raising concerns about celebrity involvement in the volatile cryptocurrency market.

40% of FLOCK disappears before take-off

Blockchain detectives were the first to raise the alarm. Just before FLOCK’s official debut, a single wallet appeared and consumed a staggering 40% of the entire token supply.

This pre-launch land grab caused paranoia among cryptocurrency enthusiasts as it indicated potential market manipulation. Things came to a head when, right after launch, the same wallet began rapidly spreading its FLOCKA holdings across a network of anonymous accounts.

“Interesting how the new exchange-funded wallet took up ~40% of the supply and dispersed to alternative wallets,” tweeted ZachXBT, a prominent blockchain researcher. This rapid proliferation of tokens has fueled suspicions that someone with insider information is using the market to their advantage.

Massive insider activity $HERD 🚨

The Ag41go wallet acquired 40% of the supply at launch and spread it across over 60 wallets before Waka Flocka (@WakaFlocka) announced.https://t.co/9tBAFwQWef https://t.co/xq5yddGbDv pic.twitter.com/UyNLPVLqWz

— Bubblemaps (@bubblemaps) June 17, 2024

Platforms like Bubblemaps, which specialize in visualizing blockchain transactions, share these concerns. “Huge insider activity,” said Nicolas Vaiman, CEO of Bubblemaps, highlighting the pre-market acquisition.

Vaiman went further, criticizing the growing trend of celebrities getting into cryptocurrencies without a good understanding of the underlying technology or market dynamics.

Waka Flocka Flame’s past raises eyebrows

The shadow of insider trading was not the only dim cloud hanging over FLOKA. Waka Herd Flame’s past dalliances with the cryptocurrency world have raised concerns about his motivations.

The rapper reportedly has a history of promoting questionable crypto projects, often without disclosing that they were paid endorsements. This pattern of behavior has led many to question whether FLOCKA is just another tool to make a quick buck rather than a legitimate cryptocurrency with long-term potential.

Crypto stars: hype or knowledge?

The FLOCK fiasco is reigniting the debate over celebrity involvement in the cryptocurrency space. While celebrity endorsements can undoubtedly create buzz and attract modern investors, critics say they often come at the expense of investor education and market stability.

These celebrities lack the necessary knowledge and understanding, Vaiman argues, pointing to the potential for misleading promotions and unethical practices driven by the desire for quick profits.

Featured image from Getty Images, chart from TradingView