Members of the Reddit community r/CryptoCurrency have taken action against two administrators allegedly engaged in insider trading of MOON tokens, as confirmed by Cointelegraph. This development follows our earlier report on October 20, which revealed that at least three wallets linked to Reddit group administrators had offloaded hundreds of thousands of dollars' worth of MOON tokens on October 18. This selloff occurred shortly before the official announcement regarding the discontinuation of the blockchain-based points program. This program revolved around the use of specific cryptocurrencies native to each community.
On-chain analytics accounts like Lookonchain on Twitter had pointed out the market dumping activities of these three wallets. The Reddit moderators, in fact, were aware of the impending shutdown of the blockchain-based points program an hour before the official announcement was made. The Reddit announcement resulted in an almost 85% drop in the token's value, which plummeted to $0.0198. It was subsequently discovered that two moderators had opportunistically sold their tokens in time, reaping substantial profits, while the rest of the community remained unaware.
Cointelegraph reached out to r/CryptoCurrency to gather insights into the allegations of insider trading and the ongoing investigation. A core contributor and MoonDust founder, U/mellon, informed Cointelegraph that two moderators have been removed from their positions, while three others are currently under investigation. The points program enabled participants on the platform to accrue points, which could be utilized with community-native crypto tokens such as MOON. Within the r/CryptoCurrency subreddit, users earned MOON, an ERC-20 token, for posting or commenting, and they had the freedom to exchange, tip, or employ it for various purposes within the community.
