Grammy-winning rapper Cardi B has launched a meme-inspired cryptocurrency called $WAP, referencing her hit song with Megan Thee Stallion.

Although Cardi B promoted the $WAP project through a video on her official X account, she has not publicly commented further, leading to concerns that her account may have been hacked.

Her promotion of the $WAP token, which is based on the Solana blockchain, has raised significant concerns about celebrity involvement in cryptocurrency.

The investigation into $WAP was prompted by formal complaints from a Dubai-based venture capital firm and local investors, alleging market manipulation and fraud.

The UAE Securities and Commodities Authority (SCA) is focusing its investigation on claims that $WAP was manipulated through promotional activities by influencers who were compensated to boost its visibility on social media.

Reports indicate that influencers received large amounts of the $WAP token for free, contributing to artificial price inflation and potential market manipulation.

The $WAP token has been accused of being part of a 'pump and dump' scheme, where insiders allegedly drove up its price before selling off their holdings, disadvantaging retail investors.

The SCA has identified violations of UAE and US securities laws, which could lead to significant penalties, including fines and criminal charges, if proven.

The SCA is collaborating with US regulatory authorities, including the SEC, to further investigate the allegations against the promoters of $WAP.

This investigation underscores the need for stricter regulations in the crypto market, particularly regarding celebrity endorsements that may defraud investors.

The situation highlights ongoing issues with celebrity endorsements in the crypto space, where tokens can quickly become targets for pump-and-dump schemes.

Following these controversies, the $WAP token has seen a significant decline, dropping 39.5% in value over the last 24 hours to approximately $0.01282.