Memecoin scam on Reddit? Wallstreetbets token crashes

The supposedly official memecoin of the subreddit r/Wallstreetbets (WSB) is loud Cointelegraph crashed from $0.00067279 to $0.00004827 in no time. The reason for this is the behavior from the ranks of the moderators, which suggests a scam.

The new token was only launched by WSB moderators on May 2nd. The subreddit is likely to be remembered by many as the nucleus from which the rise in Gamestop shares started in 2021. The reads typical of the rough tone in the discussion forum for stock speculation announcement the new currency:

“$WSB is the official memecoin of the r/Wallstreetbets subreddit. It’s the fairest memecoin launch you’ll find, with no team allocation or pre-sale. Just a free airdrop and some coins for the community. 10% of the $WSB supply is reserved as treasury for the r/Wallstreetbets sub at leisure. I’m sure she [die Moderator:innen] will spend it wisely and not waste it gambling or convincing each other to drink their own urine.”

Well, the latter might have been a better use for the coins. Because after the community had gained plenty of the new currency, according to one Tweets from on-chain expert on-chain ZachXBT the WSB moderator with the username “zjz.eth” sold large amounts of it and exchanged it for 334 Ether. Converted, that brought him a profit of 635,000 US dollars.

The process known as “rug-pull” caused the $WSB to plummet.

experts now warn against itto buy WSB coins due to the low price.

The moderators still hold 10% of the total stock and the scammer benefits with every purchase.

A:e WSB moderator:in threatens “zjz.eth” via Twitter:

She:he asks for the money back and demands an explanation. Otherwise, the police and FBI will be notified. The alleged perpetrator is now completely “doxxt”, which means that all private information about him is known and can be shared.

zjz.eth is now open Twitter responds and describes himself as a straw man in the scam.

He is currently looking for a mechanism to reverse the fatal exchange. Another moderator constantly “accidentally” diverted and sold around $25,000.

It remains to be seen how credible these statements are and who or what is actually behind the rug pull.