In a startling revelation, data analyst Pledditor has uncovered a series of eyebrow-raising transactions involving three moderators connected to Reddit's cryptocurrency forum. These mods reportedly made sizable sales of over 100,000 MOON tokens right before the platform's Community Point program was scheduled to shut down on November 8, as per Reddit's official announcement on October 17.
Community Points, which are ERC-20 tokens initially minted on the Ethereum blockchain and later transitioned to the Arbitrum Nova scaling network, allowed members to use these tokens for the purchase of badges, GIFs, and other exclusive features on Reddit. Reddit cited regulatory and scalability concerns as the primary drivers behind its decision to discontinue the program, signaling the end of a promising yet problematic venture within its ecosystem.
However, the data from Pledditor's analysis suggests that the three moderators may have acted on insider information. The most significant revelation comes from Moderator "u/Mcgillby," who was found to have moved over 100,000 MOON tokens in multiple transactions on the Arbitrum Nova Blockchain, ultimately converting them into more than $23,000 worth of ETH.
Another moderator, "u/Rider_of_the_storm," allegedly offloaded 345,422 MOON tokens, valued at approximately $71,963 at the time of transfer, to an exchange address not directly linked to the user.
The Reddit crypto community, already dismayed by the discontinuation of Community Points, has labeled these transactions as a "rug pull." This unscrupulous move led to a precipitous drop in the value of the MOON token, plummeting by approximately 84%, from $0.25 to a mere $0.04.
Despite the controversies and concerns regarding these transactions, the subreddit Cryptocurrency group has noted that moderators were privy to an early notice of the termination of the Community Points program. In a rather opaque move, the forum's administrators received one hour's advance notice of the program's demise before the announcement was made public.