This character played by Aries Spears in the movie, Promoted, is supposed to spoof all of the homophobia in hip hop. I think this is a good thing, because I think that rappers often times get a pass for some reason, and are allowed to homophobic. It's just assumed that they come from a struggle so they can be homophobes if they want to. This character is supposed to be a gay gangsta rapper. Not sure if it's actually based on any rappers in particular but it's pretty funny and addresses an important issue. Hip hop has become such a popular medium that until homophobia ends in hip hop, homophobia will still be very prevalent in society. check out this scene. https://www.youtube.com/watch?v=YDEqtdYUKA4
There are plenty of homosexuals in hip hop (at least modern hip hop), as Professor Griff from the legendary Public Enemy will tell you. https://www.youtube.com/watch?v=VqLV5f3VzuM
Probably by calling other rappers gay and accuse them of eating dick etc. and as such are using the term gay/homosexual as an insult. This at least seems a very common practice in gangsta rap.