In a transfer signalling stricter oversight of the crypto sector, the UAE has just lately intensified its regulatory stance. The most recent growth sees the nation launching an investigation into the $WAP token, endorsed by rapper Cardi B, whose standard music shares the identical identify. In line with a discover concerning the Solana-based token, the UAE is probing it for potential securities violations.
The UAE’s Securities and Commodities Authority (SCA) initiated a probe towards the crypto token suspecting it might 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 “outstanding Dubai-based enterprise capital agency” and related Emirati buyers.
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 publish together with a pockets tackle.
As per CoinTelegraph, a blockchain investigator going by the identify of Wazz flagged that the pockets tackle posted by the WAP web page was linked to a number of crypto scams.
Unimaginable how after the coin was mainly lifeless after 3 days, everybody suddently shilled $WAP on the similar time
Additionally superb that large quantities of tokens have been despatched out from sniper wallets ($50-100K+ 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) price of WAP tokens have 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 components have raised crimson flags amongst buyers and blockchain watchdogs, suggesting the memecoin might 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 acquired the tokens totally free via undisclosed monetary preparations.
As per the SCA, “Preliminary investigations recommend that the insiders related to the $WAP token, alongside varied paid Key Opinion Leaders, are orchestrating a transparent pump and dump scheme. This scheme includes artificially inflating the worth of SWAP via strategic promotions, adopted by the systematic sale of their holdings, thereby inflicting vital monetary losses on unsuspecting retail buyers.”
The UAE authorities have joined forces with BubbleMaps to deduce 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 Property Regulatory Authority (VARA) issued a cease-and-desist order towards seven crypto entities for working their companies with out buying the required approvals.
