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The r/CryptoCurrency community on Reddit has dismissed two moderators who were discovered to be engaged in insider trading of the Moons (MOON) token, as confirmed by Cointelegraph.
As reported by Cointelegraph on Oct. 20, at least three wallets associated with moderators of the Reddit group sold off hundreds of thousands of dollars worth of MOON tokens on Oct. 18, mere minutes before the official announcement regarding the termination of the blockchain-based points program that utilized specific cryptocurrencies tied to each community. The market sell-off by these three wallets was brought to attention by on-chain analysis accounts on X (formerly Twitter), including Lookonchain.
1/ Three @CCMOD_ moderators dumped $MOON in advance via #inside information from @Reddit admins. pic.twitter.com/ucrPkh6siX
— Lookonchain (@lookonchain) October 19, 2023
The moderators were informed of the program’s closure one hour prior to the public announcement. Following the Reddit announcement, the token’s value plummeted by nearly 85% to $0.0198, yet two moderators successfully sold their tokens in time to realize greater profits than the rest of the uninformed community.
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Cointelegraph contacted r/CryptoCurrency to gain insight into the insider trading claims and the investigation process. U/mellon, a key contributor and founder of MoonDust, informed Cointelegraph that two moderators were removed while three others are under investigation:
“2 mods got removed, as they sold their Moons before the official announcement from Reddit: u/rider_of_the_strom u/McGillby.”
The program enabled participants on the platform to accumulate points and utilize them with community-specific crypto tokens like MOON. Within the r/CryptoCurrency subreddit, users who create posts or comments receive the ERC-20 token MOON, which they can freely trade, tip, or use for various purposes within the community.
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