A moderator of the favored buying and selling subreddit r/WallStreetBets has dumped a big portion of the WSB Coin (WSB), a token undertaking that claims to be the official memecoin of Wall Avenue Bets.
On Might 2, WSB was launched by individuals concerned in moderating the WallStreetBets Reddit discussion board. The subreddit gained notoriety for the GameStop short squeeze, sending hedge funds to their knees in January 2021.
The creators of the WSB token claimed that there can be no allocation for the workforce and that 10% of the cash can be reserved for the subreddit. The web site writes:
“It’s the fairest launch memecoin you will see that with no workforce allocation and no presale. Only a free airdrop and a few cash for the group. 10% of the $WSB provide is reserved as a treasury for the r/wallstreetbets sub to do with as they please.”
Nonetheless, simply days later, one of many token’s workforce members began to dump huge quantities of tokens. On Might 4, on-chain detective ZachXBT tweeted that “zjz.eth,” who runs the moderation bots for the subreddit, has allegedly pulled the rug on WSB traders. On-chain information reveals that zjz.eth has bought WSB cash in trade for 334 Ether (ETH), price round $635,000 on the time of writing.
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The token value dropped massively after the dump, going from an all-time excessive of $0.00067279 to an all-time low of $0.00004827 in two days. Neighborhood members warned individuals to chorus from shopping for the dip because the moderators nonetheless have entry to 10% of the full provide.
DO NOT BUY THE $WSB DIP@zjzWSB is tough rugging, there will probably be no bounce. He has 10% of the provision and each single purchase is his exit liquidity.
This isn’t a drill.https://t.co/H1c7NidXHI pic.twitter.com/bOKFFi97jU
— Eric Cryptoman (@EricCryptoman) May 4, 2023
In the meantime, one other moderator who goes by WSBmod has threatened to report those that had been concerned within the dump to the police and the FBI in the event that they don’t attain out. The moderator urged zjz.eth to return the cash.
Cointelegraph tried to succeed in out to zjz.eth however didn’t get a direct response.
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