Karakan was founded in 1992 by Alper Aga as a solo project. Alper Aga was at that time a member of the English-speaking rap group King Size Terror. The first release of Karakan, the Maxi-CD "Defol Dazlak", which was completely self-produced, financed and distributed, quickly gained cult status amongst the Turkish youth in Germany. A year later Kabus Kerim and Big Porno Ahmet came to Karakan, who soon after would appear as the core of the rap formation Cartel.

Formed by the three groups Karakan, Da Crime Posse and Erci E. Formation Cartel took a common LP, which made it within a week to 500,000 units sold in Turkey. This success was made possible in part by the major record label PolyGram and by the strong media interest in Germany. The Cartel gained thereby superstar status in Turkey, where rap and hip hop otherwise played a very subordinate cultural role.