Reddit’s r/CryptoCurrency group has fired two moderators who have been discovered to be concerned in insider buying and selling of the Moons (MOON) token, Cointelegraph has confirmed.
As Cointelegraph reported on Oct. 20, not less than three wallets linked to Reddit group moderators dumped tons of of 1000’s of {dollars} value of MOON tokens on Oct. 18, simply minutes earlier than the official announcement of the closure of the blockchain-based factors program that concerned the usage of 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 through #inside data from @Reddit admins. pic.twitter.com/ucrPkh6siX
— Lookonchain (@lookonchain) October 19, 2023
The Reddit moderators have been made conscious of the closure of the blockchain-based factors program an hour sooner than the official announcement. The Reddit announcement induced the token to drop by almost 85% to $0.0198, however two moderators managed to promote simply in time to make extra positive aspects than the remainder of the unaware group.
Associated: Reddit group tokens soar on Kraken itemizing
Cointelegraph reached out to r/CryptoCurrency to know the insider buying and selling allegations and the way the investigation went by way of. U/mellon, a core contributor and MoonDust founder, instructed Cointelegraph that two moderators have been eliminated whereas three others are being investigated:
“2 mods bought eliminated, as they bought their Moons earlier than the official announcement from Reddit: u/rider_of_the_strom u/McGillby.”
This system allowed members on the platform to earn factors and spend them utilizing community-native crypto tokens reminiscent of MOON. Within the r/CryptoCurrency subreddit, customers who submit or depart feedback are given the ERC-20 token MOON, which they’ll freely alternate, tip or use for different functions in the neighborhood.
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