December 23, 2024
Reddit removes moderators involved in alleged insider trading of Moon tokens

Cointelegraph confirmed that Reddit’s r/Cryptocurrency community has fired two moderators suspected of insider trading in Moon tokens.

As Cointelegraph reported on October 20, at least three wallets linked to Reddit group administrators dumped hundreds of thousands of dollars worth of Moon tokens on October 18, just before the official announcement of the closure of blockchain-based points In the first few minutes of the program, the program involves the use of certain cryptocurrencies native to each community. On-chain analytics accounts such as Lookonchain on X (formerly Twitter) highlighted the market dumping of these three wallets.

Reddit moderators learned that the blockchain-based points program was shutting down an hour ahead of the official announcement. Reddit’s announcement caused the token to drop nearly 85% to $0.0198, but the two moderators sold in time, making more money than the rest of the unsuspecting community.

related: Reddit community token surges after Kraken goes public

Cointelegraph reached out to r/Cryptocurrency to learn about the insider trading allegations and the progress of the investigation. Community moderators told Cointelegraph that two moderators were removed and three other moderators are under investigation:

“Before the official announcement on Reddit, 2 mods were removed for selling their Moons: u/rider_of_the_strom u/McGillby. There were 3 other mods that were sold after the announcement, but they are still mods and the community is trying Kick them off, but still discuss them.”

The program allows participants on the platform to earn points and spend them using community-native crypto tokens such as Moon. In the r/CryptoCurrency subreddit, users who post or leave comments will receive ERC-20 tokens MOON, which they can freely exchange, reward, or use for other purposes in the community.

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