WallStreetBets Coin loses 90% in a day after rug pull

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Last Updated on 4 March 2024 by CryptoTips.eu

Three years ago there were the scandals surrounding foodcoins (Sushi, Yam and Kimchi), last year (and in 2021) you had the copies of Dogecoin (Shiba Inu and Floki for example) which were quite volatile and this year it is all about the ‘internet meme tokens’ such as Wojak, Pepe and WallStreetBets coin. The last one lost no less than 90% in one day this week due to a so-called ‘rug pull’. So be careful before investing in memecoins.

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$4,000 to $1 in 5 minutes

‘Rug pulls’ remain a problem in the crypto world. This is the phenomenon where a new coin is first very eagerly promoted on social media and then sold by the founders at what is usually the highest price point. The developers of the coin usually own more than 90% and can therefore choose when to collapse the price. One of the most famous ‘rug pulls’ happened in 2020 with the so-called foodcoins (back then it was Sushi, Yam and Kimchi).

A coin called Hotdog rose from $2 to $4,000 in a matter of days and then a rug pull caused the token to drop about 99.9% from its top to $1 in just five minutes. We would call that ‘crash and burn’.

Wojak and Pepe

This year it seems to be all about the ‘internet meme tokens’ such as Wojak, Pepe and WallStreetBets coin.

The latter is the unofficial coin of the famous Reddit group that competed against a Wall Street hedge fund a few years ago and won. The WallStreetBets coin has become very popular in recent weeks due to an airdrop of some $WSB coins to important influencers on ‘crypto twitter’. As the influencers got the coin for free, they spoke openly about it to their followers who then also bought the coin and thus got the price surged.

That apparently went well until one of the founders of the project sold all his coins yesterday and dropped the price by some 90%. As usual, crypto twitter was briefly on fire and threatened with FBI and police, but actually we can only conclude that this is not the first time that this has happened with such coins, and that it (unfortunately) will not be the last time either.

AntonioB / Depositphotos.com

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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