The r/CryptoCurrency community on Reddit has fired two moderators involved in insider trading of the Moons (MOON) token.
According to a report on October 20, at least three wallets associated with Reddit group moderators dumped hundreds of thousands of dollars worth of MOON tokens on October 18, mere minutes before the official announcement of the closure of the blockchain-based points program that required the use of specific cryptocurrencies native to each community.
On-chain analysis accounts on X (previously Twitter), including Lookonchain, highlighted the market drop by the three wallets.
The closure of the blockchain-based points program was communicated to the Reddit moderators an hour before the official announcement. The announcement on Reddit caused the token’s value to decline by nearly 85% to $0.0198, but two moderators could sell in time to profit more than the rest of the community.
U/mellon, a primary contributor and the founder of MoonDust said two moderators have been removed, and three others are under investigation with respect to the insider trading allegation.
“2 mods got removed, as they sold their Moons before the official announcement from Reddit: u/rider_of_the_strom u/McGillby.”
The program enabled platform participants to acquire and spend points using community-specific crypto tokens such as MOON. Users who post or comment in the r/CryptoCurrency subreddit receive the ERC-20 token MOON, which they may freely exchange, donate, or use for other purposes within the community.
