The WSB Coin, a token linked to the WallStreetBets community, has experienced a tumultuous journey as recent events have unfolded.
While early adopters saw significant profits, recent allegations of a rug pull by a project founder have marred the token’s reputation.
Quick profits by early WSB trader
Initially, a leading blockchain analytics platform Lookonchain shared an intriguing account of a crypto trader who swiftly traded WallStreetBets ($WSB) tokens and made significant profits.
According to Lookonchain’s Twitter account, the trader discovered $WSB just six minutes after it was listed.
Initially, the trader bought 1.9 billion $WSB tokens for 6 Ether and sold 500 million $WSB tokens for 38 Ether just 15 minutes later. The trader then reinvested by purchasing 608 million $WSB tokens for 24 Ether, only to sell 613.4 million tokens for 123 Ether.
In total, the trader has made an impressive 131 Ether ($240,000) from these quick transactions, in just 2 days.
1/ This guy missed $PEPE but discovered $WSB 6 mins after $WSB was listed and bought $WSB.
He currently holds 1.4T $WSB ($476K) and is the 5th holder of $WSB.
And he has realized a profit of ~131 $ETH ($240K)!https://t.co/fyRkdBILf3 pic.twitter.com/Uwa4xBkcSn
— Lookonchain (@lookonchain) May 3, 2023
Currently, the trader still holds 1.4 trillion $WSB tokens ($476,000) as the crypto community watches to see how the token’s value develops. This trader’s experience has generated interest and speculation about the future of the $WSB token in the market.
3/ This guy still has 1.4T $WSB ($476K) left.
Waiting for $WSB to skyrocket and become a millionaire? pic.twitter.com/KupHLK4cvT
— Lookonchain (@lookonchain) May 3, 2023
This story captured the attention of the crypto community and generated speculation about the future of the $WSB token.
WSB coin’s 86% price drop raises rug pull suspicions
The narrative took a dark turn when the WSB Coin’s price plummeted by 86%.
Allegations surfaced that a project founder, ZJZ.eth, executed a rug pull by suddenly dumping a large portion of the WSB team supply for $635,000 (334 ETH). The event has generated significant concern within the crypto community.
PeckShield, a blockchain security company, and other analysts have reported on the token being dumped for ETH. The price drop followed the WSB Coin’s previous surge in value, where it had increased by about 320% in just one day, attracting numerous investors.
Recent Twitter activity from ZachXBT, a user with almost 350k followers, and WSBMod, a former WallStreetBets subreddit moderator, further highlights the community’s concern over the alleged rug pull. WSBMod has threatened to file a police and FBI report if the founder, ZJZ.eth, does not get in touch with him.
https://twitter.com/zachxbt/status/1653937194388664322
WSB Coin had promoted itself as the “official coin” of the WallStreetBets community, using its imagery and identity for marketing purposes. The project claimed to reserve 10% of the $WSB supply as a treasury for the r/wallstreetbets subreddit and 5% of the tokens for the current moderators of the subreddit.
