Reddit moderators removed for suspicion of insider trading during Community Points shutdown

Moderators of Reddit’s largest crypto forum were dismissed implicit allegations of selling disconnected the subreddit’s autochthonal MOON token minutes earlier Reddit axed its crypto rewards program.

As a portion of Reddit’s blockchain-based assemblage points program, MOON tokens could antecedently beryllium distributed, traded, oregon spent. However, Reddit admins informed moderators of the programme cancellation an hr earlier its nationalist announcement, starring to accusations that 3 moderators dumped their holdings wrong that hour.

While Reddit attributed the determination to extremity the programme to scalability issues and an uncertain regulatory environment, the actions of the moderators person raised questions among users. Reddit idiosyncratic giddyup281 rapidly asked the mods aft the decision, “how galore admins sold earlier the news?” User 2LostFlamingos wrote:

You fto everyone physique up positions, database them connected kraken, adhd liquidity utilizing their ain extracurricular funds. And past you conscionable lit it each connected fire.

Many users person adopted the familar word “rug pull” bash picture Reddit’s actions. Others, however, person gone farther, accusing the societal media tract of insider trading. The consequent backlash person raised concerns astir the integrity of the platform’s governance, with immoderate Reddit users calling for securities fraud charges. One specified remark came from idiosyncratic Bucksaway03, whow posted:

The spot is gone, adjacent if you got the contract, the spot is gone… those who sold earlier the announcement should beryllium reported to the SEC. Removing ones aforesaid isn’t an acceptable result for insider trading.”

Community Points cancelled

According to Reddit, the Community Points inaugural was initially created to bolster communities and their contributors. However, the programme reportedly ran into issues relating to scalability and regulatory concerns.

Tokens specified arsenic MOONs and BRICKs, which branched retired from Reddit’s Community Points tools, gained immoderate traction successful 2023 arsenic meme tokens. MOONs are tied to the /r/Cryptocurrency subreddit, whereas BRICKs are linked with the /r/FortniteBR. Their popularity surged peculiarly aft their listing connected Kraken successful August.

The station Reddit moderators removed for suspicion of insider trading during Community Points shutdown appeared archetypal connected CryptoSlate.