The cryptocurrency market is known for its volatility, and investors are often reminded of this when they witness sudden attacks on altcoins or teams draining treasuries. The latest incident involves the WallStreetBets DApp (WSB) token, which has seen a significant price drop, alerting investors to the serious risks associated with such investments.
Investor interest in low market cap meme coins surged in the last months of the previous year, with meme coins on the Solana network experiencing dramatic price fluctuations on their launch day. Today, the WSB token is in the spotlight due to its declining value.
The OKX exchange decided to delist the WSB token following concerns about the WSB team’s need for treasury access and increasing negative comments about the project. OKX will remove WSB trading pairs on February 2, 2024, having already halted WSB deposits on January 23, 2024.
The delisting announcement, which came after the WSB team complained about needing access to the treasury controlled by subreddit r/WallStreetBets founder Jaime Rogozinsky, led to a price drop of over 70%.
The WSB token’s trading volume is heavily reliant on OKX, accounting for 90% of its activity. The delisting will significantly impact liquidity access, with PancakeSwap’s volume at just $69,000 compared to OKX’s $1.2 million total volume. The token’s price plummeted by 73% to $0.0011935. Additionally, OKX’s announcement regarding the closure of crypto mining pools under China’s increasing pressure suggests we may see further repercussions for the industry in Asia.