A storm of controversy has erupted in the Reddit crypto community after some moderators were accused of insider trading ahead of an announcement that tanked the price of Reddit’s MOON token.
Keypoints
- Reddit unexpectedly shut down its community points program citing scalability issues, leading to a major drop in the price of associated tokens like MOON.
- Shortly before Reddit’s announcement, some subreddit moderators with insider knowledge transferred large amounts of MOON tokens off the platform.
- On-chain analysis by Lookonchain suggests 3 mods sold around 456,353 MOON worth $92,000 just 30 minutes before the announcement.
- Another 363,227 MOON was sold just 2 minutes before the news, likely also by mods with advance information.
- This alleged insider trading by the moderators who had early access to the announcement information has angered many in the crypto community.
- The moderators involved have since been removed…
