Contents
Analysis suggests at least three Reddit Mods Dumped Token thousands of dollars worth of Moons just minutes before the actual announcement.
Popular Social Network Reddit Shuts Down Blockchain-Based Points Program
The popular social network platform Reddit announced the winddown of its blockchain-based community points program on Oct. 17, citing scalability issues. The announcement created controversy in the crypto community, with many calling it a rug-pull, as the price of the native token on different subreddits tanked after the news was revealed.
Each Subreddit Had Its Own Native Token
Each subreddit had its own native token. For example, the Moons (MOON) token was the native crypto asset of r/CryptoCurrency, while Bricks (BRICK) was for r/FortNiteBR. Users could spend these points on badges and exclusive items for their avatars.
Read More: HEICO Corporation Sees 92% Share Surge in 5 Years Despite Recent Dip
Reddit Moderators Under Scrutiny
At the time of the announcement, the moderators of most of the subreddits involved with the community points program claimed to be unaware of the decision. However, this is now being called into question as new on-chain data suggests that at least a couple of moderators holding Moons may have been linked to three wallets that dumped millions of the tokens shortly before the announcement.
Suspicious On-Chain Transactions
On-chain analysts such as Pledditor were the first to draw attention to the actions of subreddit moderator u/Mcgillby. On-chain data reveals that this moderator transferred more than 100,000 MOON over two different transactions on the Arbitrum Nova blockchain, turning it into more than $23,000 in Ether (ETH).
In another incident, just 17 minutes before Reddit’s statement, moderator u/Rider_of_the_storm allegedly shifted 345,422 MOON, worth over $69,000 at the time, to an exchange address. The Reddit account in question has since been deactivated. According to Lookonchain, on-chain data showed that at least three of the administrators overseeing the cryptocurrency subreddit liquidated tokens some 20 to 30 minutes before the announcement went public.
Moderators’ Response and Speculation
A statement from the Reddit moderators clarified that they received the notice about the termination of the community points program an hour prior, suggesting that the three moderators could have used the information to dump their token holdings.
Do you need help in finding the best crypto exchange for your needs?
Click here: The Best Crypto Exchange Finder
Disclaimer:
Please note that this article serves solely for informational purposes. As such, it is not financial advice. We strongly advise readers to conduct thorough research and consult with financial professionals before making any investment decisions.
Follow Us on Facebook: Tradingcompass.io
