The news of the insider sale of the WallStreetBets (WSB) tokens led to a major frenzy with retail players dumping their tokens and its price tanking by nearly 90%.
WallStreetBets (WSB) token, linked to the popular subreddit WallStreetBets, saw its token price plummeting by a staggering 90% in the past 24 hours. This happened as an insider closely connected with the project dumped a very large amount of WSB tokens.
Just within three days, WSB’s market cap had jumped to more than $50 million. ZachXBT, a blockchain sleuth had warned investors and holders of WSB regarding the early sales on Thursday, May 4. He stated that @zjzWSB had “dumped a large portion of the WSB team supply for $635K (334 ETH).”
In one of his recent tweets, ZachXBT mentioned:
“Another day another meme coin rug this time involving ZJZ.eth from @wsbcoinofficial who suddenly dumped a large portion of the WSB team supply for $635k (334 ETH)”.
In another separate tweet, ZachXBT mentioned that yet another token insider dubbed “OIP” signed these transactions held on a multi-signature wallet. One of the wallets apparently existed for the team to fund marketing and other exchange listing plans.
However, the news of the insider sale of the WallStreetBets (WSB) tokens led to a major frenzy with retail players dumping their tokens and its price tanking by nearly 90%.
Confusion Related to WallStreetBets (WSB) Token Airdrop
Earlier, the crypto Twitter community members had received an airdrop of nearly seven Ether (ETH) worth of WSB tokens, just for pasting their crypto wallet addresses on @WSBmod’s tweet. The @WSBmod is one of the pseudonymous creators of WSB tokens.
This helped the tokens to quickly go viral on Crypto Twitter, wherein holders announced the “official, unofficial token” as another boost in the ongoing meme coin frenzy. The meme coins gained popularity, particularly during the crypto bull run of 2021.
After Thursday’s event of the massive dumping of WSB tokens, @WSBMod remained hopeful of recovery and had also warned of legal action against @zjzWSB.
“Hey @zjzWSB , if you don’t get in touch with me within 4 hours I will file a police and FBI report. You are fully doxxed. I don’t understand why you would do this. You can still return the money,” tweeted @WSBMod.
However, none of the tokens have been returned so far as per the blockchain data. On the other hand, @zjzWSB has alleged that @WSBMod was “constantly, secretly” draining tokens with airdrop that he had sent to himself.
He said:
“Need crypto chad devs who can help sort this out. Want to send a contract {x} eth and be claimable by those long (not via airdrop) before dump. WSB Coin was engineered to enrich wsbmod (lol imagine). Sorry it took me too long to notice”.
Read other crypto news on our website.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
