Allegations have emerged regarding Reddit moderators who may have dumped Moon tokens shortly before the social media platform announced the termination of its blockchain-based community points program on October 17. This evidence, which comes from multiple on-chain data analytics, has caused controversy within the cryptocurrency community.
On-chain analyst @Pledditor highlighted that at least three Reddit moderators may have unloaded thousands of dollars worth of Moon tokens immediately before Reddit publicly declared its decision to end the blockchain program. This sudden dumping caused the value of $MOON to drop by -22%. Previously, the program allowed users to earn and spend community points in the form of native tokens like Moons and Bricks for various subreddits. These points were used to purchase badges and exclusive items for users’ avatars.
Initially, moderators claimed ignorance of Reddit’s decision to terminate the program. However, new data has cast doubt on these assertions. On-chain transactions indicate that a moderator known as Mcgillby transferred more than 100,000 Moons over two transactions on the Arbitrum Nova blockchain, converting them into over $23,000 in ETH.
Another moderator, who goes by the username “rider_of_the_storm,” allegedly moved 345,422 Moons, worth more than $69,000 at the time, to an exchange address just 17 minutes before Reddit’s announcement. Lookonchain, an on-chain data analytics firm, confirmed that at least three moderators executed transactions 20 to 30 minutes before Reddit broke the news. After these transactions, both moderators took steps to erase their digital footprints, with Mcgillby deleting all previous Reddit posts and “rider_of_the_storm” deactivating their Reddit account.
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These actions have sparked heated discussions within the Reddit and blockchain communities, with many describing the situation as a “rugpull.” In a collective statement, Reddit moderators acknowledged receiving an hour’s notice before the termination announcement, indicating that they had time to act upon this information. However, it remains unclear whether there will be any legal repercussions for those involved in the Moon token dump.
The timing and circumstances surrounding the Moon token dump not only question the integrity of certain Reddit moderators but also fuel ongoing discussions about transparency and ethics in the blockchain and cryptocurrency sectors. The incident highlights the need for clearer guidelines and accountability measures within these communities to prevent similar situations from occurring in the future.
As of now, Reddit has not issued an official statement in response to the allegations, leaving many to speculate on what actions, if any, the platform will take to address the issue. It is essential for Reddit to provide transparency and address the concerns raised by the community to maintain trust and credibility in its platform.
In conclusion, the allegations against Reddit moderators dumping Moon tokens shortly before the termination of the blockchain-based community points program have stirred controversy. The evidence from on-chain data analytics raises questions about the integrity of these moderators and brings broader discussions about transparency and ethics in the blockchain and cryptocurrency sectors. It remains to be seen how Reddit will respond to these allegations and whether any legal consequences will follow for those involved.
