WallStreetBets-linked Token Plummets in Price After Mod Appears to Dump Tokens

A significant portion of the tokens that had been earmarked for the team seems to have been sold off by a major player behind a cryptocurrency connected to the WallStreetBets forum.

This morning, the WSB Coin community raised the alarm, citing blockchain data that shows zjz.eth, who, according to his Twitter profile, manages WallStreetBets’ moderation bots, sold off significant amounts of WSB Coin through Uniswap over the period of a few hours.

In the hours after the announcement, the price of WSB Coin fell by about 90%, according to CoinGecko statistics.

This evening’s incident was first brought to the public’s attention by Ice Bagz, a Twitter user. ZachXBT, a blockchain investigator, stepped in afterward and said that zjz.eth had “suddenly dumped a large portion of the WSB team supply for $635k (334 ETH).” Later, in a tweet, crypto security experts PeckShield noted that another wallet from which zjz.eth had transmitted a significant quantity of WSB Coin “also seems to have dumped for 8.312 ETH.”

Later, in a different tweet, ZachXBT asserted that OIP, another WSB Coin moderator, had contributed to the transactions’ authorization by serving as the second co-signer on a multi-signature wallet. 

Late on Wednesday, WSBMod, another important project participant, convened an urgent Twitter Space to address the community’s worries. 8,000+ persons participated. One participant said that the Spaces organizers tried to get in touch with zjz.eth to get more information about the issue, but he didn’t respond. A request for comment from WSBMod did not get a prompt response.

Later, WSBMod tweeted zjz.eth with the threat: “If you don’t contact me within 4 hours, I’ll file the police and FBI report.” Your doxxing is complete. I don’t know why you would do anything like this. You must speak out if there is a justification in any way, but I’m not sure how. The money may still be returned.

According to a tweet from WSBMod on May 2, WSB Coin went online on May 2 and announced itself as the “official unofficial memecoin of r/wallstreetbets,” with 10% of the token’s supply designated for WallStreetBets and 5% reserved for moderators. 

Uncertainty surrounds the precise nature of the connection between the token and the subreddit, which is notorious for coordinating trading tactics among ordinary investors.