WallStreetBets' WSB Coin Crashes 95% in Rug Pull Scam

Key Takeaways:

WallStreetBets meme coin gets off to a rocky start.
After a 320% rally, the coin plummeted 95%.
A rug pull of an accident?

YEREVAN (CoinChapter.com) – The meme coin market is booming, with PEPE rocketing 75% in the previous 24 hours and a WallStreetBets coin making headlines. But for a different reason.

Allegedly, the WSB moderator, the anonymous entity with the Twitter handle @WSBMod, allegedly pulled the rug on the meme coin investors. Here’s a short recap of what happened:

WSB price does somersaults after alleged rug pull

WSB rocketed over 300% in late April. However, the price of the WSB meme coin dropped a whopping 95% from $0.00052 in the New York session on May 3 to $0.000029 in the Asian-Pacific session on May 4.

Also read: What is a $1 trillion Platinum Coin that may save the US from default amid the debt ceiling crisis?

After the drop, a tweet surfaced by the person who oversees moderation bots for the WSB subreddit. They claimed @WSBMod “constantly, secretly drained” several airdrops worth over $25,000. Allegedly the WSB creator bought ETH with those coins.

Am seeking return mechanism for eth – threats / dox entirely unnecessary reee
Coin was being constantly, secretly drained by the deployer (wsbmod) w/ "accidentally" huge (~$25k) airdrops he claimed/sold many of. Hence his 0% allocation, willingness to set up pool for "free", etc.
— zjz.eth (@zjzWSB) May 4, 2023

@WSBMod replied to the tweet, asking the moderator to contact them, but apparently did not get a reply.

Apparently, @zjzWSB ‘dropped the bomb and left’ as WSBMod kept tweeting and tagging him all day, evoking the police and the FBI.

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.

if somehow theres an explanation you have to speak up but idk how that's possible

you can still return the money.
— WSBMod (@wsbmod) May 4, 2023

WallStreetBets price recovers

Also, according to their latest tweet, WSB gave up unilateral control over the coin.

hey @zjzWSB and @is_unpopular a 2/3 multisig has been set up with @zachxbt and @Loopifyyy as signers so i would have no unilateral control.

0xfD2b2bae7d5A7b2114Dd9B5AeEBcB4181940A944https://t.co/F5cSBkBCMj

please return the funds pic.twitter.com/l7cAcjkbnr
— WSBMod (@wsbmod) May 4, 2023

The token traded at $0.0002041 in the New York session on May 4, pulling off a 67% rally since 13:00 pm GMT, as seen on the chart above. According to Etherscan, the meme coin has over 1,500 holders. However, the 5 largest wallets hold control nearly 60% of the supply.