Reddit's r/CryptoCurrency community has fired two moderators who were found to be involved in insider trading of the Moons (MOON) token, Cointelegraph confirmed.
As Cointelegraph reported on October 20, at least three wallets linked to Reddit Group Moderators Dropped Hundreds of Thousands of Dollars in MOON Tokens on October 18, a few minutes before the official announcement of the closure of blockchain-based points program which involved the use of certain cryptocurrencies native to each community. The market decline by all three wallets was highlighted by on-chain analysis accounts on X (formerly Twitter), such as Lookonchain.
1/ Three @CCMOD_ abandoned moderators $MOON in advance via #inside information of @Reddit administrators. pic.twitter.com/ucrPkh6siX
โ Lookonchain (@lookonchain) October 19, 2023
Reddit moderators learned of the closure of the blockchain-based points program an hour before the official announcement. Reddit's announcement sent the token down almost 85% to $0.0198, but two moderators managed to sell just in time to make more profits than the rest of the unwitting community.
Related: Reddit Community Tokens Soar on Kraken List
Cointelegraph contacted ar/CryptoCurrency to understand the insider trading allegations and how the investigation unfolded. MoonDust lead contributor and founder U/mellon told Cointelegraph that two moderators were removed while three others are under investigation:
"2 mods removed as they sold their Lunas before the official Reddit announcement: u/rider_of_the_strom u/McGillby."
The program allowed platform participants to earn points and spend them using native community crypto tokens like MOON. On the r/CryptoCurrency subreddit, users who post or leave comments receive the ERC-20 MOON token, which they can freely trade, tip, or use for other purposes in the community.
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