Reddit mods have dumped tokens hours before the blockchain program ends.
Popular social networking platform Reddit announced on October 17 that its blockchain-based community points program has been discontinued. The announcement sparked controversy among many in the crypto community as the price of the native token on various subreddits spiked after the news broke.
Each subreddit had its own native token. For example, Moons (MOON) token was a native crypto asset of r/CryptoCurrency, while Bricks (BRICK) was for r/FortNiteBR. Users can spend these points on badges and avatar special items.
At the time of the announcement, moderators of most subreddits involved with the Community Points program said they were unaware of the decision. However, this is now being called into question as new on-chain information suggests that at least two moderators holding Moon may have been in contact with the three wallets that dumped millions of tokens shortly before the announcement.
Related: Reddit Community Tokens Added to Kraken List
Chain commentators such as Pleader were the first to draw attention to the actions of subreddit moderator u/magilby. On-chain data shows that this moderator transferred more than 100,000 MOON on the Arbitrum Nova blockchain in two separate transactions, exchanging more than $23,000 in Ether (ETH). The user subsequently deleted all previous Reddit posts.
.@ Reddit admins already told /r/CryptoCurrency moderators, and 3 moderators sold $MOON tokens on insider info $MOON price dropped -22% minutes before the announcement was posted
Here's a list of Reddit moderators working on inside information before the announcement: pic.twitter.com/xAh75hOVEa
— Pleditor (@Pleditor) October 18, 2023
In another instance, 17 minutes before making a Reddit statement, moderator U/reader_of_storm 345,422 MOON, worth more than $69,000 at the time, is said to have changed the address of the exchange. The Reddit account in question has been deactivated. According to Lookonchain, on-chain data cryptocurrency was made public 20 30 minutes before some cryptocurrency subreddit managed at least three tokens.
1/ Three @CCMOD_ moderators dropped $MOON early on #inside info from @Reddit admins. pic.twitter.com/ucrPkh6siX
— Lookonchain (@lookonchain) October 19, 2023
A statement from the Reddit moderators explained that they had received a notification about the termination of the Community Points program an hour ago, and pointed out that the three moderators could have used the information to dump their token holdings.
Magazine: Blockchain Investigators – Matt Gox's failure saw the birth of Chinalysis
