Reddit’s r/CryptoCurrency group has fired two moderators who had been discovered to be concerned in insider buying and selling of the Moons (MOON) token, Cointelegraph has confirmed.

As Cointelegraph reported on Oct. 20, a minimum of three wallets linked to Reddit group moderators dumped tons of of hundreds of {dollars} value of MOON tokens on Oct. 18, simply minutes earlier than the official announcement of the closure of the blockchain-based factors program that concerned using sure cryptocurrencies native to every group. The market dump by the three wallets was highlighted by on-chain evaluation accounts on X (previously Twitter), corresponding to Lookonchain.

1/ Three @CCMOD_ moderators dumped $MOON upfront through #inside info from @Reddit admins. pic.twitter.com/ucrPkh6siX

— Lookonchain (@lookonchain) October 19, 2023

The Reddit moderators had been made conscious of the closure of the blockchain-based factors program an hour sooner than the official announcement. The Reddit announcement brought on the token to drop by almost 85% to $0.0198, however two moderators managed to promote simply in time to make extra positive factors than the remainder of the unaware group.

Associated: Reddit group tokens soar on Kraken itemizing

Cointelegraph reached out to r/CryptoCurrency to know the insider buying and selling allegations and the way the investigation went by way of. U/mellon, a core contributor and MoonDust founder, instructed Cointelegraph that two moderators had been eliminated whereas three others are being investigated:

“2 mods bought eliminated, as they offered their Moons earlier than the official announcement from Reddit: u/rider_of_the_strom u/McGillby.”

This system allowed individuals on the platform to earn factors and spend them utilizing community-native crypto tokens corresponding to MOON. Within the r/CryptoCurrency subreddit, customers who put up or go away feedback are given the ERC-20 token MOON, which they’ll freely trade, tip or use for different functions in the neighborhood.

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