• UAE SCA seeks SEC investigation into $WAP token securities violations.
• WAP, promoted by Cardi B, is claimed to have been concerned in a pump-and-dump scheme.
• Investigators recognized a KOL, an insider, who was orchestrating value manipulation.

The UAE Securities and Commodities Authority (SCA) has formally ordered the U.S. Securities and Trade Fee (SEC) to research the WAP cryptocurrency token promoted by Cardi B on the Solana blockchain for attainable securities violations. requested.

The WAP token, closely promoted by Cardi B on X (previously Twitter), has been linked to a pump-and-dump scheme which will contain insiders. The SCA's request follows a tip-off from a Dubai-based enterprise capital agency and Emirati buyers who expressed issues about fast value manipulation. The token's buying and selling quantity skilled a pointy spike and subsequent decline over a brief time period, suggesting an organized rip-off.

Dubai Enterprise Capital CEO highlights influencer manipulation

a Tweet Saeed Sameer, CEO of a Dubai-based enterprise capital agency, additional elaborated on the grievance, stating that influencers, key opinion leaders (KOLs), and insiders are concerned in unethical monetary practices. It defined how the value of WAP might have been manipulated for private profit via agreements. The SCA investigation focuses on this alleged manipulation between influencers and people concerned in selling the token.

The WAP token obtained intensive promotion via X and attracted appreciable consideration. The promotion was led by paid KOLs, insiders, and celebrities like Cardi B, who allegedly obtained undisclosed monetary compensation within the type of tokens.

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Investigation revealed that the scheme artificially inflated the value of WAP earlier than promoters and insiders bought their holdings, leading to important losses for retail buyers. Proof from Bubblemaps and WazzCrypto factors to unethical bundling of provide and value manipulation. Key accounts related to this scheme included KOLs resembling @The__Solstice, @KookCapitalLLC, and @WazzCrypto, all of whom participated in what was described as a pump-and-dump operation.

SCA alleges these actions violate US and UAE securities legal guidelines and is searching for cooperation from regulators and X to hint the IP addresses and logs of the promoters concerned. The SCA's request is predicated on proof of systematic manipulation and highlights the dangers of unregulated crypto promotion by celebrities and social media influencers.