Reddit Mods Accused of Selling Subreddit Tokens With Inside Information
The MOON token started selling off moments before Reddit’s public announcement that it would kill its community tokens.
By: yyctrader •Crypto News
Three moderators of the r/CryptoCurrency subreddit are being accused of using their advance knowledge of Reddit’s decision to sunset crypto-based Community Points to sell their own tokens ahead of the community.
The MOON token started selling off about an hour before Reddit posted the decision to kill the points program on the cryptocurrency subreddit. Moderators of the community commented on Reddit’s statement, saying that they were “made aware of the decision until 1 hour ago.”
Addresses on the Arbitrum network, which hosts the tokens, show large sales before the announcement. Blockchain sleuths NovaWhaleAlert and Pledditor allege those addresses have been linked with the mods.
Two of the moderators are no longer in their roles, and one has deleted their account, according to Pledditor, who also noted that the MOON token dropped by more than 20% just minutes before the announcement.
A post from TNGSystems appears to confirm that moderators were consulted before the decision to end the points program was finalized.