The WallStreetBets (WSB) token, associated with the popular WallStreetBets subreddit, experienced a significant drop of 90% in its value in the last 24 hours due to a large sell-off by an insider closely connected to the project. The market capitalization of WSB had surged to over $50 million in less than three days, but the insider’s actions triggered panic selling by token holders, leading to the dramatic drop in value.
Blockchain sleuth @Zachxbt alerted token holders to the sales early on Thursday, reporting that an individual named @zjzWSB had sold a significant portion of the WSB team supply for $635K (334 ETH) from a multi-signature wallet set up by the team for marketing and exchange listing plans. Another token insider, known as “OIP,” also signed these transactions.
Previously, members of the Crypto Twitter community had received an airdrop of nearly seven ether (ETH) worth of WSB tokens by pasting their crypto wallet addresses on @WSBmod’s tweet, one of the anonymous creators of WSB tokens. This airdrop helped the tokens go viral on Crypto Twitter, with holders hyping it up as another boost in the ongoing meme coin frenzy.
@WSBMod remained optimistic of a recovery and threatened legal action against @zjzWSB on Thursday morning, demanding that the individual return the money within four hours, or face a police and FBI report. @WSBMod added that the individual was fully doxxed and urged them to return the money.