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Popular WallStreetBets subreddit-linked WallStreetBets DApp (WSB) token has plummeted sharply since the start of May. The token has dropped from a high of $0.002014 to its current price of $0.0007555 in just three days.
The sudden price dump is attributed to an apparent token sale by insiders leading to token holders dumping their token holdings en masse.
WSB holders dumping their token holdings
On Thursday morning, blockchain sleuth @Zachxbt warned WSB token holders of the sales. He stated that one @zjzWSB had “dumped a large portion of the WallStreetBets DApp team supply for $635K (334 ETH).”
@ZachXBT also added that the transactions were signed by another WallStreetBets DApp insider called “OIP.” The assets were held in a multi-signature wallet apparently for the team to fund marketing and exchange listing plans.
The insider sale has prompted retail token holders to dump their tokens en masse causing a market panic that has contributed to the price fall.
What had caused the earlier WSB price surge?
The crypto Twitter community members had previously received an airdrop of WSB tokens worth about 7ETH for simply pasting their crypto wallet addresses on @WSBmod’s tweet, which is one of the pseudonymous of one of the creators of WallStreetBets DApp.
The hype on Twitter made the token quickly go viral just as another meme coin frenzy on Twitter pushed PEPE and WOJAK to the limelight.
@WSBMod warns @zjzWSB of legal action
@WSBMod has warned @zjzWSB of legal action through a tweet saying:
“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.”
However, @zjzWSB seemed adamant and in return replied telling @WSBMod that he could still return the money.
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