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* * @link https://developer.wordpress.org/themes/basics/template-files/#template-partials * * @package CoverNews */ ?> Reddit mods dumped tokens hours before blockchain program termination – CoinsMegaNews

Reddit mods dumped tokens hours before blockchain program termination

Reddit mods dumped tokens hours before blockchain program termination

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Popular social network platform Reddit announced the wind-down of its blockchain-based community points program on Oct. 17 citing scalability issues. The announcement created controversy in the crypto community with many calling it a rug-pull as the price of the native token on different subreddits tanked after the announcements. 

Each subreddit had its own native token. For example, the Moons (MOON) token was the native crypto asset of the r/CryptoCurrency board, while Bricks (BRICK) was for the r/FortNiteBR subreddit. Users could spend these points on badges and exclusive items for their avatars.

At the time of the announcement the moderators of most of the subreddits involved with the community points program claimed to be unaware of the decision. However, this is now being called into question as new on-chain data suggest at least a couple of moderators holding Moon tokens may have been linked to three wallets that dumped millions of the tokens shortly before the actual announcement.

Related: Reddit community tokens soar on Kraken listing

On-chain analysts such as Pledditor were the first to draw attention to the actions of a subreddit moderator with the pseudonym Mcgillby. On-chain data reveals that this moderator transferred more than 100,000 Moons over two different transactions on the Arbitrum Nova blockchain, turning them into more than $23,000 in ETH. The user subsequently deleted all earlier Reddit posts.

In another incident, just 17 minutes before Reddit’s open statement, “rider_of_the_storm,” a different moderator, allegedly shifted 345,422 Moons, worth over $69,000 at the time, to an exchange address. The Reddit account in question has since been deactivated. According to Lookonchain, on-chain data showed that at least three of the administrators overseeing the cryptocurrency subreddit liquidated tokens some 20 to 30 minutes before the announcement went public.

A cumulative statement from the Reddit moderators clarified that they received the notice about the termination of the community points program an hour earlier, suggesting at least three moderators may have used the prior information to dump their token holdings.

Magazine: Blockchain detectives — Mt. Gox collapse saw birth of Chainalysis



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