Analysis uncovers the intriguing narrative of at least three Reddit moderators who hastily divested themselves of thousands of dollars’ worth of Moons mere moments before the official revelation.
The popular social networking hub, Reddit, declared the cessation of its blockchain-based community points initiative on the 17th of October, citing issues related to scalability. This announcement stirred up a storm in the cryptocurrency realm, with many branding it a “rug-pull,” as the value of the platform’s native token plummeted across various subreddits in the wake of the news.
Each subreddit had its unique native token; for instance, r/CryptoCurrency had its Moons (MOON), while r/FortNiteBR boasted Bricks (BRICK). These tokens offered users the opportunity to splurge on badges and exclusive items for their avatars.
When the announcement hit, most of the moderators overseeing the community points program on various subreddits professed their ignorance about the decision. Yet, recent on-chain data casts doubt on these claims, suggesting that a few of the Moon-holding moderators might have had ties to three wallets that offloaded millions of tokens shortly before the announcement.
On-chain analysts, with Pledditor at the forefront, were the first to draw attention to the actions of u/Mcgillby, a subreddit moderator. The on-chain data disclosed that this moderator initiated transfers of over 100,000 MOON across two transactions on the Arbitrum Nova blockchain, converting them into an impressive sum of more than $23,000 in Ether (ETH).
In another intriguing turn of events, a mere 17 minutes before Reddit’s official statement, u/Rider_of_the_storm, a moderator, purportedly shifted a staggering 345,422 MOON tokens, valued at over $69,000 at the time, to an exchange address. Curiously, the Reddit account associated with this transaction has since been deactivated. As per Lookonchain’s analysis, on-chain data hints that at least three of the administrators overseeing the cryptocurrency subreddit orchestrated the liquidation of tokens some 20 to 30 minutes prior to the announcement becoming public knowledge.
In response, Reddit moderators issued a statement clarifying that they had received notification about the discontinuation of the community points program an hour before the public announcement. This timeline raises questions about whether the trio of moderators utilized this advance knowledge to offload their token holdings.
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