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Reddit’s r/CryptoCurrency community removes moderators accused of insider trading

October 24, 2023
in Business
Reddit’s r/CryptoCurrency community removes moderators accused of insider trading
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r/CryptoCurrency removes moderators for MOON token insider trading.
Insider trading led to an 85% token price drop, sparking debates.
MOON token’s future remains uncertain, with discussions and pending decisions.

In a recent development within the r/CryptoCurrency subreddit, a community of 6.9 million crypto enthusiasts, a group of moderators has been ousted for alleged insider trading of MOON tokens.

This incident has stirred a flurry of discussions within the crypto community, raising questions about fairness, transparency, and regulatory actions.

Moderators removed amid insider trading accusations

Last Tuesday, Reddit announced its decision to terminate the “Community Points” program – a blockchain-based system designed to reward content creators and developers. This program allowed users to earn and spend community points using native tokens like MOON.

However, a significant controversy erupted when it was revealed that some moderators had traded MOON tokens shortly before the official announcement.

4/

According to @CCMOD_, the Reddit admins posted an announcement at 13:02 New York Time declaring their plans to sunset support for RCPs.https://t.co/0I3zAfMnde

From @Pledditor. https://t.co/nJcI16Nj7E

— Lookonchain (@lookonchain) October 19, 2023

Approximately 30 minutes before Reddit’s decision, these moderators reportedly sold 456,353 MOON tokens, valued at $92,000, causing the token’s value to plummet by over 85% to $0.0198.

The gravity of the situation prompted swift action. Reddit’s r/CryptoCurrency community took a decisive step by removing all moderators involved in the insider trading of MOON tokens. This move aimed to address concerns of fairness and integrity within the community.

Future of MOON tokens

The insider trading incident has elicited a range of responses from the crypto community. Some individuals called for regulatory actions against the moderators accused of wrongdoing, emphasizing the need for accountability. Simultaneously, others expressed dissatisfaction with the advance notification given to moderators, arguing that all participants should have been treated equally.

The r/CryptoCurrency subreddit is now actively deliberating the future of MOON tokens.

A proposal put forth by u/mellon98, a core contributor and founder of MoonsDust, is under consideration. Additionally, the community awaits Reddit’s decision on whether to transfer the MOON token contract to the community or a burn address.

In the midst of this turmoil, r/CryptoCurrency asserts its commitment to the MOON community token, emphasizing that “Moons are here to stay.”

The Reddit r/CryptoCurrency community’s actions reflect its dedication to upholding these principles and ensuring the sustained presence of MOON tokens in the crypto space.

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