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

Analysts Remain Bullish on SpaceX Stock Despite Recent Challenges

chest

Despite recent challenges, analysts maintain a bullish outlook on SpaceX stock, citing its unique positioning in the market.

user avatarDavid Robinson

SpaceX Stock Faces Volatility Amid Lockup Expirations

chest

SpaceX stock has experienced significant fluctuations due to recent lockup expirations, with investors questioning its future performance.

user avatarAndrew Smith

Meta's Valuation Advantage Over SpaceX

chest

Despite SpaceX's rapid growth, Meta has a more favorable stock valuation, trading at about 66 times sales compared to SpaceX's 45 times sales.

user avatarZainab Kamara

SpaceX Outpaces Meta in Revenue Growth

chest

SpaceX's revenue grew by 92% year-over-year, while Meta's revenue increased by 28%. SpaceX's growth is driven by demand for AI and connectivity, whereas Meta's growth is slower but consistent.

user avatarJacob Williams

SpaceX and Meta Compete for $2 Trillion Valuation

chest

SpaceX and Meta are competing for a $2 trillion market valuation, with SpaceX having briefly reached this mark in June.

user avatarSon Min-ho

SanDisk's Impressive Stock Performance Post Spin-off

chest

SanDisk has experienced a remarkable stock increase of almost 3,900% since its spin-off from Western Digital, driven by high demand for NAND flash memory, with analysts suggesting over 50% upside from current levels.

user avatarAyman Ben Youssef

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.