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

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.

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