Reddit administrators liquidated tokens hours before the end of the blockchain program
Data reveals that minutes before the announcement, at least three Reddit administrators unloaded Moons valued thousands of dollars.
Reddit, a widely used social networking site, stated on October 17 that it would discontinue its blockchain-based community points program due to scaling concerns. The price of the native coin on several subreddits dropped after the statement was made, causing debate in the crypto community.
There was a unique token for each subreddit. Moons (MOON) token was the in-house cryptocurrency of r/CryptoCurrency, whereas Bricks (BRICK) was the in-house cryptocurrency of r/FortNiteBR. These points may be redeemed for unique avatar accessories and badges.
Many moderators of subreddits associated with the community points system first denied knowing about the news. However, this is now being questioned as fresh on-chain evidence reveals at least two moderators with Moons may have been connected to three wallets that dumped millions of the tokens just before the release.
The acts of subreddit moderator u/Mcgillby were first brought to light by on-chain experts like Pledditor. Data from the Arbitrum Nova blockchain shows that this moderator exchanged more than $23,000 worth of Ether for more than 100,000 MOON over the course of two separate transactions. The user has since removed all of their previous Reddit contributions.
Additionally, only 17 minutes before to Reddit’s revelation, moderator u/Rider_of_the_storm reportedly transferred 345,422 MOON, at the time valued over $69,000, to an exchange address. The relevant Reddit account has been deleted. Lookonchain analyzed on-chain data and found that 20-30 minutes before the news became public, at least three moderators monitoring the cryptocurrency subreddit liquidated coins.
Reddit’s moderators issued a statement clarifying that they learned of the community points program’s demise an hour earlier, giving rise to speculation that the three moderators may have utilized this knowledge to unload their token holdings.