Allegations have emerged concerning Reddit moderators who are accused of offloading Moon tokens just minutes before the social media platform announced the termination of its blockchain-based community points program on October 17. This revelation, backed by on-chain data analytics, has sparked controversy within the cryptocurrency community.
Reddit Moderators Unload Moon Tokens Prior to Announcement
On-chain analyst @Pledditor has raised concerns about at least three Reddit moderators potentially selling a substantial amount of Moon tokens, resulting in a drastic -22% drop in $MOON’s value before the official termination announcement by Reddit. The community points program allowed users to earn and spend these tokens, such as Moons for the r/CryptoCurrency board and Bricks for the r/FortNiteBR subreddit. These tokens could be used to purchase badges and exclusive items for user avatars.
Moderators initially claimed to be unaware of Reddit’s decision to end the program. However, new on-chain data has cast doubt on their assertions. Notably, an on-chain transaction analysis revealed that a moderator known as Mcgillby transferred over 100,000 Moons on the Arbitrum Nova blockchain, converting them into more than $23,000 worth of ETH. Another moderator, going by the name “rider_of_the_storm,” allegedly moved 345,422 Moons worth over $69,000 to an exchange address just 17 minutes before Reddit’s announcement.
Data from on-chain analytics firm Lookonchain confirmed that at least three moderators executed transactions 20 to 30 minutes before Reddit made the public announcement. Following these transactions, both moderators made efforts to delete their digital footprints; Mcgillby deleted all previous Reddit posts, and “rider_of_the_storm” deactivated their Reddit account. These actions have sparked intense discussions within the Reddit and broader blockchain communities, with many labeling it as a “rugpull.”
“In a cumulative statement, Reddit moderators acknowledged receiving an hour’s notice before the announcement of the program’s termination, proving that moderators had time to act upon this information.”
It remains uncertain whether there will be any legal consequences for those involved in the Moon token dump. The timing and circumstances surrounding this incident not only raise questions about the integrity of certain Reddit moderators but also fuel ongoing discussions regarding transparency and ethics within the blockchain and cryptocurrency sectors.
Reddit’s Response and Speculation
As of now, Reddit has not issued an official statement in response to the allegations, creating suspense and speculation within the community regarding potential actions the platform might take to address this issue.
