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An industry plant is simply an artist that is made to appear as if they come from organic, humble beginnings but is really being funded by a label covertly.
It is a real thing. Logic was signed to DefJam for a good 2 years before it was announced...while he was making "indy" music.
This has always been my definition of a industry plant. Wiz was the same way, telling the world he was an indy artist, but already had a deal.