Reddit recently made a controversial announcement that it would be discontinuing its blockchain-based community points program due to scalability issues. The decision sparked a significant response within the cryptocurrency community, with many perceiving it as a "pull" move, leading to a sharp decline in the price of the native tokens across various Reddit subreddits.
Each subreddit on Reddit has its own native token, like Moons (MOON) for r/CryptoCurrency and Bricks (BRICK) for r/FortNiteBR. These tokens allow users to purchase badges and exclusive avatar items. The unexpected decision to discontinue the program left most subreddit moderators, who had been participating in the Community Points program, feeling caught off guard.
However, recent on-chain data has raised questions about the moderators' awareness of the decision. It suggests that a few moderators who held Moons may have been associated with wallets that dumped millions of tokens shortly before the announcement. This activity has raised suspicions and attracted attention within the crypto community.
One of the highlighted cases is that of Reddit moderator u/Mcgillby, who reportedly moved over 100,000 MOON in two separate transactions on the Arbitrum Nova blockchain, converting them into more than $23,000 in Ethereum before subsequently deleting all their previous Reddit posts. Another incident involves moderator u/Rider_of_the_storm, who transferred 345,422 MOON, worth over $69,000 at the time, to an exchange address just 17 minutes before Reddit's official statement. The Reddit account associated with this action has since been suspended.
On-chain data analysis by platforms like Lookonchain has indicated that at least three administrators who moderate the cryptocurrency Reddit subreddit may have liquidated their tokens approximately 20 to 30 minutes before the public announcement. This activity has raised questions about whether these moderators had access to information ahead of the decision to discontinue the Community Points program.
It is important to note that these findings have brought the topic of transparency and accountability within the cryptocurrency community to the forefront, as the community looks for answers and clarification regarding these transactions and the discontinuation of the program.
