WallStreetBets Moderator Allegedly Engages in Rug Pull, Disposes of $635K Worth of Memecoin

user avatar

by Max Nevskyi

3 years ago


In a span of 48 hours, the token experienced a significant decline in value, dropping from its record peak of $0.00067279 to its lowest point ever at $0.00004827.

A member responsible for moderation on the widely-followed trading subreddit r/WallStreetBets has recently sold a significant portion of the WSB Coin (WSB), a cryptocurrency project that positions itself as the official memecoin of Wall Street Bets.

On May 2nd, a group of individuals who were active in moderating the WallStreetBets subreddit launched a new platform called WSB. This subreddit had gained significant attention earlier in January 2021 due to its involvement in the GameStop short squeeze, which caused major losses for hedge funds.

The developers of the WSB token have stated that there will be no allocation for the team and that 10% of the coins will be set aside for the subreddit community, as mentioned on their website:

ТIt’s the fairest launch memecoin you will find with no team allocation and no presale. Just a free airdrop and some coins for the community. 10% of the $WSB supply is reserved as a treasury for the r/wallstreetbets sub to do with as they please.

However, a few days later, a member of the token's team initiated a significant token sell-off. On May 4th, ZachXBT, an on-chain detective, tweeted about the alleged rug pull by "zjz.eth," the individual responsible for operating the moderation bots on the subreddit. According to on-chain data, zjz.eth exchanged WSB coins for 334 Ether, equivalent to approximately $635,000 at the time of writing.

After experiencing a significant sell-off, the token price witnessed a drastic decline, plummeting from its record peak of $0.00067279 to an unprecedented low of $0.00004827 within a span of two days. Concerned community members cautioned individuals against purchasing the dip due to the moderators retaining access to 10% of the overall token supply.

In the midst of this situation, WSBmod, another moderator, has issued a warning to those implicated in the data leak. WSBmod has threatened to report the individuals to both the police and the FBI if they fail to make contact. The moderator specifically urged zjz.eth to return the funds.

Cointelegraph recently made an effort to establish contact with zjz.eth; however, an immediate response was not received.

Tier I

Sector: #18291

Sealed Cache Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, caches will be stored in your inventory and can be opened with Keys.

Other news

Bitcoin Red Team Established to Tackle AI-Driven Security Threats

chest

The Bitcoin Red Team has been established to proactively identify AI-assisted security vulnerabilities in the Bitcoin ecosystem.

user avatarTando Nkube

TON Validators Prepare for Configuration Vote on New Collator Architecture

chest

TON validators are updating their node software and mytonctrl tooling for a configuration vote on a new collator architecture scheduled for August 21 at 0800 UTC.

user avatarKofi Adjeman

Aave's EMode: Efficiency and Risk in DeFi Lending

chest

Aave's EMode feature allows for efficient borrowing among correlated assets but also increases the risk of liquidation during market stress.

user avatarSatoshi Nakamura

Avalanche Surpasses $3 Billion in Tokenized Real-World Assets

chest

Avalanche's tokenized real-world asset value has surpassed $3 billion, marking a significant milestone in its development as a platform for institutional finance.

user avatarNguyen Van Long

Aave's Debt Concentration Raises Concerns Amid Ethereum Volatility

chest

Aave's debt profile shows that a small number of loan positions account for a significant portion of its total outstanding debt, raising concerns about risk concentration.

user avatarJesper Sørensen

Shift in Airdrop Strategy Reflects Changing Market Dynamics

chest

Optimism's decision to reallocate tokens indicates a shift away from broad airdrops towards more strategic ecosystem investments.

user avatarLucas Weissmann

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.