If we're discussing freestyles as in, not on the album and no chorus, Doo Wop released a tape called 95 Live back in 1995. It was the first tape of its kind; The first 20 minutes of the tape were all (written) freestyles from Keith Murray, Q-Tip, Busta Rhymes, Rampage, Fat Joe, Uneek, M.O.P., Guru, Wu-Tang Clan and Ill & Al Skratch. With the exception of Uneek, everybody on the first 20 minutes of the tape was a well known MC with a hot single (or album) and a video getting played on Rap City, Yo! MTV Raps and Video Music Box. If you read The Source you would have been familiar with everybody on the first 20 minutes of the tape. After the 20 minutes of freestyles... the tape started! (and then Doo Wop released 95 Live part 2 in the second half of 1995 with the same format. Both tapes are GOAT!)
However, as ya'll know I'm rolling with Biggie. This freestyle, The Wickedest Freestyle, appeared on Mr Cee's The Best of Biggie mixtape which also came out in the summer of 1995, about 6 months after Ready to Die around the same time as Junior Mafia's Conspiracy album but before Lil Kim's Hardcore. There's a version floating around the internet with Funkmaster Flex yelling over the beginning. That version came out in 1999 on Funkmaster Flex's 60 Minutes of Funk Vol 4. But the original version came out on Mr Cee's tape and wasn't on Ready to Die or Life After Death. Furthermore I don't believe Biggie ever recited this rhyme again, it was an exclusive verse for Mr Cee. Nowadays rappers call something "Exclusive" and it shows up on somebody else's mixtape and then they recite the same verse on their album, at least it used to be like that.