Crypto Memecoin Rug Pull: WAP Token’s Pump-and-Dump Sparks Investor Outcry
Crypto investors experienced yet another rollercoaster ride after a high-profile endorsement propelled the WAP memecoin to dizzying heights—only for its market cap to implode minutes later. The latest episode surrounding the Solana-based Wet Ass and Pussy (WAP) token is a warning for traders navigating the ever-volatile memecoin sector.
On June 3, a celebrity-driven X (formerly Twitter) post unleashed a surge for WAP, doubling its price from $0.0011 to $0.0022 in a single day. The initial frenzy saw the token’s market capitalization balloon to $2.5 million. However, the excitement vanished within minutes: wallets that had stockpiled WAP in the days before the social media promotion dumped their holdings, causing the market cap to crater to just $139,000. This deliberate profit-taking—reportedly earning some traders 10X returns—drew criticism from many market observers.[Dexscreener chart of WAP token price movements]
Blockchain analysts suggest this wasn’t the first such event for WAP. Last October, WAP’s market cap briefly touched $40 million following earlier endorsements, only to collapse below $200,000 soon after. Blockchain security firms had even flagged suspicious activity at the time, warning that significant portions of the supply were concentrated in a few wallets—an ongoing risk for small-cap crypto tokens.
Crypto community figures were quick to denounce last week’s episode. Industry commentator Patrick Schmitt lambasted the repeat hype around WAP, underscoring that traders must develop resilience to the temptation of hyped tokens and focus on tokens with proven structures. “If you fell again for the same scam, you unfortunately haven’t learned from last year,” he remarked. Insights like these echo expert warnings about the ongoing risks of memecoins and pump-and-dump schemes, especially for newcomers or those attracted by viral blockchain moments.
On-chain investigator ZachXBT added weight to the criticism, suggesting that the resumption of WAP promotion was financially motivated, given the token’s prior history and ongoing financial disputes linked to certain stakeholders.[ZachXBT Twitter screenshot discussing WAP dump]
This incident comes at a time when crypto traders are increasingly wary of memecoin dynamics and rug pull scams. As highlighted in recent industry analyses, many such tokens are designed to leverage fleeting hype. Prospective investors—particularly those on the hunt for altcoin opportunities—should research token distribution, team backgrounds, and liquidity risks before entering.
For those interested in memecoins but wary of potential pitfalls, consider learning more about beginner-friendly crypto security and wallet tracking tools to monitor unusual token flows, or explore our detailed guide on the risks and signals of emerging memecoin projects.
Related reading: Biggest crypto rug pulls of 2024: reviewing warning signs and lessons for investors | Wallet tracker crypto tools to spot suspicious activity
In summary, the WAP debacle highlights a broader lesson—memecoins can generate immense buzz, but without transparency, they remain fraught with risk. A sharp understanding of on-chain data and commonsense risk management are essential for any crypto trader navigating this space.