WallStreetBets Moderator Accused of Dumping WSB Coin
A major scandal has erupted within the WallStreetBets community after a moderator allegedly sold off hundreds of thousands of dollars’ worth of WSB Coin (WSB), a newly launched memecoin claiming to represent the famous subreddit.
The WSB token debuted on May 2 as the “official memecoin” of the WallStreetBets movement — the same online community that sparked the GameStop short squeeze in early 2021. The project promised a fair launch, no team allocation, and a community treasury holding 10% of the token supply.
“It’s the fairest launch memecoin you will find with no team allocation and no presale,” the project’s website declared. “Just a free airdrop and some coins for the community.”
Alleged Rug Pull Worth $635K
Only days after the launch, on-chain data revealed that one of the project’s core members, identified as “zjz.eth,” sold a massive amount of WSB tokens in exchange for 334 Ether (ETH), worth around $635,000.
On-chain investigator ZachXBT confirmed the transaction on May 4, tweeting that “zjz.eth,” a moderator who manages subreddit bots, “has allegedly pulled the rug on WSB investors.”
The sale caused WSB Coin’s price to plummet from its all-time high of $0.00067279 to $0.00004827 — a staggering 90% drop in just 48 hours.
Community Reactions and Fallout
Following the dump, community members warned traders not to “buy the dip,” stressing that the moderators still held access to 10% of the token’s total supply.
Crypto influencer Eric Cryptoman cautioned on Twitter:
“DO NOT BUY THE $WSB DIP. @zjzWSB is hard rugging — there will be no bounce. He has 10% of the supply, and every single buy is his exit liquidity. This is not a drill.”
Another WallStreetBets moderator, known as “WSBmod,” has since threatened legal action, urging the alleged perpetrator to return the funds and warning that the case could be reported to the police and the FBI.
A Reputation at Stake
The incident has severely damaged confidence in the WSB token and cast a shadow over the subreddit’s credibility within the crypto space. While the project initially sought to revive the WallStreetBets legacy through a decentralized community token, its swift collapse highlights the ongoing risks of memecoin speculation and community-driven crypto launches.
