WallStreetBets, a subreddit for investing, gained notoriety during the GameStop (NYSE:GME) share frenzy. Following all of the hoopla, one of the founders of the forum, as well as a moderator, launched “WSB DApp,” according to a release.
Today, WallStreetBets says it has selected BSCstarter to launch the $WSB token. The $WSB token is expected to be launched through an “Initial Dex Offering” (IDO) on BSCstarter’s platform. Token offerings become eligible following votes by the BSCstarter community. The fundraising process is said to be automated.
According to the organizers:
The WSB DApp, a decentralized application powered by WallStreetBets, is at the heart of the $WSB ecosystem that will reallocate the special privileges of closed-door institutions to the individuals in the community. The WSB DApp provides financial instruments on the blockchain that resemble index funds, which can provide portfolio diversification at low costs with strong long-term returns.
The public IDO is scheduled to go live on Tuesday, April 20, 2021, at 10 AM EST.
So is $WSB a security? Good question. You can review the “Litepaper” here that indicates US citizens may not be eligible for the token offering. The document states that the “whitepaper has not been created within a legal or regulatory framework for any jurisdiction.”
Update: The WallStreetBets subreddit has posted that the WSB token offering is a scam. To quote WallStreetBets:
What is it with loser ex-mods hijacking the WSB name and using crypto to scam people?
People keep posting a press release about an “official” WallStreetBets distributed app. (Aka, a crypto pyramid scheme)
Nothing could be further from the truth. We are strongly anti-monetization. This scam has nothing to do with us.
This is yet another attempt for the pathetic and disgraced founder (removed by Reddit Admins in 2020) to cash out on a subreddit whose only contributions allegedly include:
- Phishing our users
- Attempting to run a shitty paid mentoring group
- Selling advertising on the subreddit
- Trying to turn options trading into an esport
- Selling WSB out to movie producers
- Attempting to change our logo to some god awful abomination
Don’t throw away your money on this scam.
Throw it away on OTM FDs instead.
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