In a shocking turn of events, the WallStreetBets token, associated with the widely known WallStreetBets subreddit, has witnessed a massive 90% drop in just 24 hours. This dramatic fall came after an insider with close ties to the project sold off a substantial portion of WSB tokens, resulting in the token’s market capitalization reaching a staggering $50 million in under three days.
Notably, the blockchain sleuth @Zachxbt had preemptively alerted token holders of the sale on Thursday morning. He stated that one @zjzWSB was responsible for dumping the large portion of the WSB team supply, amounting to $635,000 (334 ETH). In another tweet, he revealed that another token insider, “OIP,” was behind the transactions, which were stored on a multi-signature wallet designated for marketing and exchange listing plans.
This insider sale fostered a chain reaction where token holders began dumping their holdings en masse, greatly contributing to the token’s severe price collapse.
However, even in the midst of the chaos, the Crypto Twitter community managed to make the token go viral on their platform. Many users received an airdrop of nearly seven ether (ETH) worth of WSB tokens simply by posting their crypto wallet addresses on @WSBmod’s tweet, one of the pseudonymous creators of the WSB tokens. The community has touted the “official, unofficial token” as a factor in speeding up the ongoing meme coin frenzy, which has given birth to other tokens like PEPE and WOJAK that are grounded in internet culture.
Despite the challenges, @WSBmod expressed optimism about the possibility of recovering the lost funds and warned of legal actions taken against @zjzWSB. In a tweet, he stated: “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.”
As of writing time, blockchain data indicated that none of the dumped tokens have been returned. This development raises concerns about the safety and trustworthiness of the project and its insiders. On the other hand, hope still lingers for token holders who believe in the potential of the token and its eventual recovery. This tense situation underlines the volatile nature of cryptocurrency markets and the need for both caution and transparency from all parties involved.
Source: Coindesk
