Kii no rapper, especially one who clearly isn't in it for the art, doesn't want to be unsigned.
That's the entire goal of an up-and-coming artist.
Oh, and in a recent RS article with Jimmy Iovine, he cleared everything up. He had no intention of signing Iggy and his words were taken out of context. He then went on to praise Azealia, mentioning that he expects her to have a meteoric rise and that her talent is "mind-blowing."