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The moderator of the popular trading subreddit r/WallStreetBets has dumped the bulk of the WSB Coin (WSB), a token project that claims to be the official Wall Street Bets memcoin.
On May 2, the WSB was launched by the people involved in moderating the WallStreetBets Reddit forum. The subreddit gained notoriety for GameStop’s short squeeze bringing hedge funds to their knees in January 2021.
The creators of the WSB token have stated that there will be no allocation for the team and that 10% of the coins will be reserved for the subreddit. The site writes:
“This is the most honest memcoin launch you will find with no team allocation and no pre-sale. Just a free airdrop and a few coins for the community. 10% of the $WSB offer is reserved as a treasury for the r/wallstreetbets subwoofer to use as they please.”
However, just a few days later, one of the members of the token team began dumping massive amounts of tokens. On May 4, network detective ZachXBT tweeted that “zjz.eth,” which runs subreddit moderation bots, had allegedly pulled the rug on WSB investors. On-chain data shows that zjz.eth sold WSB coins in exchange for 334 Ether (ETH) worth about $635,000 at the time of writing.
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The price of the token dropped heavily after the dump, rising from an all-time high of $0.00067279 to an all-time low of $0.00004827 in two days. Community members have warned people to refrain from buying dip as moderators still have access to 10% of the total supply.
DO NOT BUY THE $WSB DIP@zjzWSB is hard rugging, there will be no bounce. He has 10% of the supply and every single buy is his exit liquidity.
This is not a drill.https://t.co/H1c7NidXHI pic.twitter.com/bOKFFi97jU
— Eric Cryptoman (@EricCryptoman) May 4, 2023
Meanwhile, another moderator, working under the username WSBmod, threatened to report those involved in the dump to the police and the FBI if they didn’t get in touch. The moderator urged zjz.eth to return the money.
Cointelegraph attempted to contact zjz.eth but received no immediate response.