Coin Edition -
- The WSB token launched by WallStreetBets has lost 90% of its value following dumps by insiders.
- Users on Twitter have alleged a rug pull perpetrated by the memecoin’s developers.
- WallStreetBets on Twitter has claimed that he was scammed by the co-creators of the WSB token.
The WSB token affiliated with the popular finance subreddit WallStreetBets has tanked more than 90% amid allegations of a rug pull after insiders dumped several hundred thousand worth of WallStreetBets tokens over the past 24 hours.
The official Twitter handle of the WSB Coin revealed earlier today that it had made mistakes in the wallet that controlled the WallStreetBets token’s treasury holdings. The treasury multisig was allegedly used to move funds and sell a considerable amount of WSB tokens. The team has since been buying back the sold tokens to make the treasury whole again.
On-chain sleuth ZachXBT took to Twitter earlier today to report that an insider from the WSB project who goes by zjz.eth on Twitter, had dumped a large portion of the WSB token’s team supply for 334 ETH ($635,000). When the sleuth reached out to the WallStreetBets team, he was told that the transaction involved another insider called OIP.
I reached out to @wsbmod for clarification on the other multisig signer for the 6.86B WSB transaction and they claim it belongs to the mod OIP. So zjz created the transaction and OIP executed it. pic.twitter.com/LMdQQxNDST— ZachXBT (@zachxbt) May 4, 2023
News of the insider dumps spread like wildfire among WSB holders, which led to a selling frenzy leading to a drop of over 90% in the memecoin’s price. The token lost millions in market capitalization and reached as low as $0.000029 earlier today. At the time of writing, WSB Coin was trading at $0.000071.
The official Twitter handle of WallStreetBets revealed the identities of the insiders responsible for the dumping. Jordan Zazzara (zjz.eth) and Noor Al-Enaney (OIP) are the insiders accused of the alleged rug pull. The official WSB moderator has warned both insiders to get in touch and return the funds or face legal action. “@zjzWSB and @is_unpopular are 100% guilty scammers who manipulated me and earned my trust likely with bad intentions from the start,” the moderator tweeted.
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