Reddit Dismisses Two r/Cryptocurrency Moderators Over Moon Token Insider Trading Scandal
Summary:
Two moderators from Reddit's r/Cryptocurrency community have been dismissed following their involvement in insider trading of the Moon token. Investigations revealed the moderators sold their tokens just before the official shutdown of the blockchain-backed points scheme, which led to a dramatic drop in token value. Further inquiry is ongoing to scrutinize the roles of three other moderators connected to this incident.
Two moderators from the Reddit r/Cryptocurrency community have been dismissed following their involvement in the insider trading of the Moon token, according to confirmed reports by Cointelegraph. On Oct. 20, it was disclosed that at least three wallets tied to the Reddit moderator team unloaded Moon tokens worth several hundreds of thousands of dollars on Oct. 18, right before the formal declaration of the shutdown of the blockchain-backed points scheme, which engaged specific community-based cryptocurrencies. Around the same time, these wallets experienced a substantial market drop, a fact underscored by on-chain analysis accounts on X (previously Twitter) such as Lookonchain.
The Reddit group's moderators were informed of the points programme's cessation an hour prior to the public disclosure. The Reddit statement prompted the token value to plunge by about 85% to $0.0198, but two timely moderators managed to sell off their holdings for a higher gain than the rest of the oblivious community.
In a quest to comprehend the insider trading claims as well as the subsequent investigation, Cointelegraph contacted the r/Cryptocurrency community. According to a community moderator, two moderators were expelled, while an investigation is underway for three others. The comment states: “Two moderators were asked to leave after selling their Moons prior to Reddit's formal announcement: u/rider_of_the_strom u/McGillby. Three additional moderators who sold after the announcement are still serving, although community discussions about their removal are ongoing.”
The aforementioned scheme enabled individuals on Reddit to earn and expend points using community-specific cryptocurrencies like Moon. Users in the r/CryptoCurrency subreddit who post or comment receive the ERC-20 token MOON. This token can be traded, tipped, or used for a variety of other community-related activities.
Published At
10/23/2023 11:39:22 AM
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