Data Analyst Reveals Moderators Sold Over 100,000 MOON Tokens
A data analyst known as Pledditor has uncovered evidence suggesting that three moderators associated with Reddit’s cryptocurrency forum sold more than 100,000 MOON tokens before the platform’s Community Point program was shut down. Reddit announced on October 17 that it would be discontinuing its blockchain-based rewards service called Community Points by November 8. These Community Points are ERC-20 tokens minted on the Ethereum chain and later scaled to the Arbitrum Nova scaling network. Users could redeem these tokens to purchase badges, GIFs, and other features on Reddit. The discontinuation was due to regulatory difficulties and scalability concerns.
Insider Trading?
Pledditor’s data reveals that the three moderators appeared to have acted on insider information by selling large amounts of MOON tokens, the native token of the r/CryptoCurrency community. For example, Moderator “u/Mcgillby” transferred over 100,000 MOON tokens through various transactions on the Arbitrum Nova Blockchain, converting them into over $23,000 worth of ETH. Another moderator, “u/Rider_of_the_storm,” allegedly dumped 345,422 MOON tokens valued at approximately $71,963 at the time of transfer to an undisclosed exchange address. Moderator “/u/IHaventEvenGotADog” also made an unidentified amount of MOON token transfer to Arbitrum Nova.
Reddit Crypto Forum Reacts
The Reddit crypto community expressed frustration and disappointment over the discontinuation of the Community Points program, accusing it of being a rug pull. Since then, the value of the MOON token has dropped by approximately 84% from $0.25 to $0.04. Despite controversies surrounding the significant sell-off and suspicions of a rug pull, the subreddit Cryptocurrency group claimed that the moderators had received prior notice of the program’s termination. However, many community members believe that the shutdown was an attempt to avoid potential legal action by the U.S. Securities and Exchange Commission (SEC).
Hot Take: Reddit Moderators Accused of Insider Trading and Rug Pull
The recent revelation of moderators selling large amounts of MOON tokens before Reddit’s Community Points program shut down has sparked controversy within the cryptocurrency community. The data analyst Pledditor provided evidence suggesting that these moderators acted on insider information, causing a significant drop in the value of the MOON token. While some community members defend the moderators, claiming they received prior notice, others believe this was a deliberate rug pull to avoid regulatory scrutiny. Regardless of the motives behind the sell-off, this incident highlights the challenges faced by blockchain-based rewards programs and raises questions about transparency and fairness within online communities.
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