WallStreetBets-linked token plummets in price after mod appears to dump tokens

Quick Take

  • A key figure behind WSB Coin appears to have suddenly sold a large number of tokens that had been reserved for the team. 
  • Blockchain sleuths sounded the alarm late on Wednesday, prompting a 90% fall in the price of WSB Coin. 

A key figure behind a cryptocurrency associated with the WallStreetBets subreddit appears to have sold off a large number of the tokens that had been reserved for the team.

The WSB Coin community sounded the alarm this morning, pointing to blockchain data that shows zjz.eth — who according to his Twitter profile runs WallStreetBets’ moderation bots — selling off large sums of WSB Coin via Uniswap over the course of a few hours.

WSB Coin’s price plummeted nearly 90% in the hours after the news, according to CoinGecko data.

A Twitter user named Ice Bagz first drew attention to the incident this evening. Blockchain sleuth ZachXBT later weighed in, stating that zjz.eth had “suddenly dumped a large portion of the WSB team supply for $635k (334 ETH).” Crypto security analysts PeckShield later stated, in a tweet, that another wallet that had been sent a large amount of WSB Coin from zjz.eth “also seems to have dumped for 8.312 ETH.”

ZachXBT later claimed, in a separate tweet, that another WSB Coin moderator named OIP helped authorize the transactions, acting as the second co-signer on a multi-signature wallet. 

Zjz.eth did not immediately respond to a request for comment. 


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Community panic

Another key figure in the project named WSBMod hosted an urgent Twitter Spaces late on Wednesday to address the community’s concerns. Over 8,000 people joined. According to one attendee, the Spaces organizers were attempting to contact zjz.eth for clarity on the situation, but he failed to answer. WSBMod did not immediately respond to a request for comment.

WSBMod later published a tweet addressed to zjz.eth, warning, “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 there's an explanation you have to speak up but idk how that's possible. You can still return the money.”

WSB Coin went live on May 2, declaring itself the “official unofficial memecoin of r/wallstreetbets,” with 10% of the token’s supply reserved for WallStreetBets and 5% reserved for moderators, per a WSBMod tweet at the time. 

The exact nature of the relationship between the token and the subreddit — which is known for coordinating trading strategies among retail investors — is not entirely clear. 

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About Author

Ryan Weeks is deals editor at the The Block, focused on fundraising, M&A and institutional trends in the crypto space, among other things. He is particularly interested in investigative work — so please send tips! Ryan previously worked at Financial News, Dow Jones as a fintech correspondent in London. Prior to that, he wrote for several different publications, including Sifted, AltFi and Wired. Beyond journalism, Ryan is a keen reader and writer. He enjoys all things active, especially running, rugby, climbing and tennis.