- Reddit r/CryptoCurrency community has removed moderators involved in insider trading of MOON tokens.
- The moderators have been accused of selling MOON tokens moments before Reddit announced to end its Community Points program.
- The three moderators sold 819,580 MOON tokens worth over $151,000.
Recent events within the r/CryptoCurrency Reddit community have prompted a swift response to address concerns related to insider trading. In a statement from the subreddit’s crypto community, they confirmed that all moderators who sold MOONs before their announcement regarding the discontinuation of their Community Points program have been removed from their positions and the group.
This situation began to unfold six days ago, on October 17, when Reddit made an announcement about discontinuing its blockchain-based Community Points program due to scalability issues. “At that point, you’ll also no longer see Points in your Reddit Vault nor earn any more Points in your communities,” Reddit announced to its r/CryptoCurrency community.
Apparently, it wasn’t the program’s discontinuation that grabbed everyone’s attention. Allegations have arisen surrounding Reddit moderators, suggesting their involvement in the sale of MOON tokens just moments before Reddit announced the program’s termination.
Three moderators, armed with insider information about the impending news, sold a staggering 819,580 MOON tokens, valued at over $151,000.
Specifically, on-chain transactions indicate that a moderator known as “Mcgillby” transferred more than 100,000 MOONS in two transactions on the Arbitrum Nova blockchain, converting them into over $23,000 worth of ETH.
Another moderator, “rider_of_the_storm,” moved 345,422 MOON tokens, valued at more than $69,000 at the time, to an exchange address. The last moderator, “IHaventEvenGotADog,” approved selling 363,227 MOON tokens for 38 ETH, valued at $59,000.
Lookonchain, an on-chain data analytics firm, later confirmed that these transactions occurred 2 to 23 minutes before Reddit’s announcement. The price of MOON plummeted by over 85% to $0.0198 in response to Reddit’s announcement. At the time of writing, MOON’s price is changing hands at $0.0348.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
