Reddit

MOON

In a dramatic turn of events, Reddit’s r/CryptoCurrency community has removed two moderators over their alleged involvement in insider trading of the Moons (MOON) token. The decision comes just days after <a href="https://news.todayq.com/reddits-plan-to-close-blockchain-reward-system-upsets-users/" rel="noopener noreferrer nofollow">Reddit announced</a> it was pulling the plug on its long-running, blockchain-based rewards service called Community Points. How it started 
Reddit introduced the Community Points feature back in 2020, with the goal of incentivizing quality content on the platform. Users earned points for positive engagement in select subreddits.
The points were handed out in the form of Ethereum-based ERC-20 tokens stored in the platform’s in-house crypto wallet service, known as “Reddit Vault.” However, the company later shifted the points service to the layer-2 solution Arbitrum in a quest for higher scalability.&nbsp;
The native token of each subreddit was different. For instance, the r/CryptoCurrency community had a native token called the Moons (MOON) while the r/FortNiteBR subreddit had Bricks (BRICK). Users could use these tokens allowed users to buy special badges and items for their avatars. Reddit’s Community Points reward scheme discontinued 
Last week, a Reddit team member said that the company has decided towind down its blockchain-based rewards service, Community Points, due to scalability concerns. The announcement caused a stir within the crypto company, with many calling it a rug-pull, as the price of the native token on different subreddits plummeted after the news broke out.&nbsp; Moderators accused of insider trading 
The matter escalated after on-chain analysis firm Lookonchain revealed on X (previously Twitter) that 3 moderators linked to the r/CryptoCurrency subreddit had offloaded MOON tokens worth hundreds of thousands of dollars, just moments before Reddit officially announced it was shutting down its Community Points program.&nbsp;
1/ Three
Analysts at Lookonchain alleged that these moderators had been tipped off about the program’s closure an hour before Reddit’s official announcement, which sent the price of the MOON token tumbling by a whopping 85% to $0.0198. Two moderators allegedly made a fortune by selling their tokens via insider trading while the rest of the community remained oblivious.
In the wake of these allegations, the moderators identified as “u/rider_of_the_storm” and “u/McGillby” have been fired, according to Lookonchain. Meanwhile, the r/Cryptocurrency subreddit team has launched an investigation into 3 other moderators who were also allegedly involved in the insider trading of the MOON token.
With the crypto market already facing <a href="https://news.todayq.com/report-crypto-market-sees-potential-for-price-surges-amid-rising-uncertainty/" rel="noopener noreferrer nofollow">headwinds</a>, Reddit’s abrupt decision to shut down the Community Points reward system has sent shockwaves throughout the community. Some Reddit users have accused the company of “ruining” their community.
© Todayq News

Reddit ousts moderators on suspicion of insider trading of MOON tokens

Todayq News

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