The rise of the WSB Coin (WSB-USD) may be over as quickly as it began. Inspired by the popular r/WallStreetBets subreddit, WSB saw its market capitalization surge to an impressive $50 million in only three days. However, it hasn’t taken long for the crypto to start plunging back down to earth.
Yesterday, a Twitter user who claims to specialize in crypto rug pulls warned investors that an insider had recently offloaded a significant portion of their WSB coin holdings. The token quickly began to fall as a result and it hasn’t stopped since, leaving investors to wonder about WSB’s future. More specifically, if it has one.
It’s hard to make a case for the stability of meme tokens. That said, it’s not unreasonable to think that a community like r/WallStreetBets could have the power to represent a successful one, at least temporarily. Let’s dive deeper into what’s happening with this falling crypto phenomenon.
What’s Happening With WSB Coin?
Since news of insiders selling yesterday, WSB Coin has fallen significantly. As of this writing, the crypto is down by more than 50% for the past 24 hours and its current trajectory doesn’t look promising. That said, WSB has risen somewhat from previous lows; it dipped as far as 90% earlier.
Data from ApeWisdom shows that, despite falling so far, the token is not ranking among the most trending cryptos across investing subreddits and forums. By contrast, mentions of Dogecoin (DOGE-USD) – the original meme token — and others continue to trend upward.
According to the tweet warning of the WSB sale, the alleged seller profited roughly $635,000, equivalent to 334 Ethereum (ETH-USD). A Twitter account associated with WSB Coin, @WSBMod, tweeted at the seller (identified as user @zjzWSB), making threats about police and FBI reports unless the money is returned. CoinDesk reports that the alleged seller has made no move to do so. However, the alleged seller also recently tweeted the following;
“It’s hard to describe the feeling of realizing you’ve been had and knowing people in your community are getting bamboozled by a fox you let into the hen house. I thought I could read a .sol file and steer clear of tomfoolery. so much for that.”
While the future of this token remains uncertain, it seems unlikely that WSB will rise in the future as insiders and investors continue to sell. WSB Coin will likely struggle to find itself on lists of the best cryptos to follow as markets prepare for a new chapter. There is reason to believe that stronger cryptos can rebound. But for meme tokens like WSB, the future looks grim.
On Low-Capitalization and Low-Volume Cryptocurrencies: InvestorPlace does not regularly publish commentary about cryptocurrencies that have a market capitalization less than $100 million or trade with volume less than $100,000 each day. That’s because these “penny cryptos” are frequently the playground for scam artists and market manipulators. When we do publish commentary on a low-volume crypto that may be affected by our commentary, we ask that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: How to Avoid Popular Cryptocurrency Scams
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
