Reddit removes moderators involved in alleged insider trading of MOON tokens

Reddit’s r/CryptoCurrency group has fired two moderators who had been discovered to be concerned in insider buying and selling of the Moons (MOON) token, Cointelegraph has confirmed.

As Cointelegraph reported on Oct. 20, no less than three wallets linked to Reddit group moderators dumped hundreds of thousands of dollars worth of MOON tokens on Oct. 18, simply minutes earlier than the official announcement of the closure of the blockchain-based points program that concerned using sure cryptocurrencies native to every group. The market dump by the three wallets was highlighted by on-chain evaluation accounts on X (previously Twitter), reminiscent of Lookonchain.

1/ Three @CCMOD_ moderators dumped $MOON upfront by way of #inside data from @Reddit admins. pic.twitter.com/ucrPkh6siX

— Lookonchain (@lookonchain) October 19, 2023

The Reddit moderators had been made conscious of the closure of the blockchain-based factors program an hour sooner than the official announcement. The Reddit announcement triggered the token to drop by practically 85% to $0.0198, however two moderators managed to promote simply in time to make extra positive factors than the remainder of the unaware group.

Associated: Reddit community tokens soar on Kraken listing

Cointelegraph reached out to r/CryptoCurrency to grasp the insider buying and selling allegations and the way the investigation went by. U/mellon, a core contributor and MoonDust founder, instructed Cointelegraph that two moderators had been eliminated whereas three others are being investigated:

“2 mods obtained eliminated, as they bought their Moons earlier than the official announcement from Reddit: u/rider_of_the_strom u/McGillby.”

This system allowed contributors on the platform to earn factors and spend them utilizing community-native crypto tokens reminiscent of MOON. Within the r/CryptoCurrency subreddit, customers who publish or go away feedback are given the ERC-20 token MOON, which they will freely change, tip or use for different functions locally.

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