Reddit Insiders Allegedly Sold Off Moons Before Announcement
It appears that insiders connected to Reddit’s Cryptocurrency subreddit may have sold off significant quantities of Moons, the forum’s own cryptocurrency, before Reddit publicly announced plans to discontinue its Community Points program. This announcement caused an 85% drop in the value of the Moon token.
Blockchain Data Reveals Suspected Insider Trading
Despite claims from subreddit moderators that they were unaware of Reddit’s decision, blockchain data tells a different story. Wallets linked to these moderators unloaded large amounts of Moon tokens just minutes before Reddit’s announcement on October 17th.
A notable case involved a moderator named Mcgillby, who transferred over 100,000 Moons, converting them into over $23,000 in ETH. The user then deleted all previous Reddit posts. Another moderator, rider_of_the_storm, moved 345,422 Moons to an exchange address shortly before the announcement.
Moderators Given Prior Notice
The subreddit moderators released a statement indicating that they were informed about the discontinuation of the Community Points program one hour before it was publicly announced. However, the rapid succession of on-chain transactions suggests that some moderators may have rushed to sell their Moon tokens before the information was disclosed.
Hot Take: Possible Insider Trading on Reddit’s Cryptocurrency Subreddit
The alleged insider trading involving Reddit’s Cryptocurrency subreddit raises concerns about fairness and transparency within the community. If proven true, it would undermine trust among users and highlight the potential for manipulation in decentralized platforms. Such incidents emphasize the need for stricter regulations and monitoring mechanisms to prevent insider trading and protect investors in the crypto space.
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