Business Reddit mods dumped tokens hours before blockchain program termination - Analysis suggests at least three Reddit moderators dumped thousands of dollars worth of Moons just minutes before the actual announcement.

PRASHANT JHA
OCT 20, 2023



Popular social network platform Reddit announced the winddown 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 news was revealed.

Each subreddit had its own native token. For example, the Moons (MOON) token was the native crypto asset of r/CryptoCurrency, while Bricks (BRICK) was for r/FortNiteBR. 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 suggests that at least a couple of moderators holding Moons may have been linked to three wallets that dumped millions of the tokens shortly before the announcement.

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

Spoiler: Image in Tweet

Tweet (Archive)

In another incident, just 17 minutes before Reddit’s statement, moderator u/Rider_of_the_storm allegedly shifted 345,422 MOON, 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.

Spoiler: Image in Tweet

Tweet (Archive)

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

Source (Archive)

 

[jertzog]

I'm curious how insider speculation with shitcoins is actually policed.
Are there people that monitor the blockchains continuously to try and trace them to wallets on exchanges or what?

 

[Yaks]

I'm curious how insider speculation with shitcoins is actually policed.
Are there people that monitor the blockchains continuously to try and trace them to wallets on exchanges or what?

Short answer: Yes.
Policed is stretching it, though. It's mostly blockchain autists who are always watching and let out the alarm bells.

 

[haunted vagina]

I'm curious how insider speculation with shitcoins is actually policed.

It's not, if you want an unregulatable fake currency for doing crime then you're going to get what you wish for.

 

[Sithis]

No
No
Not my MOOOOOOOOOOOOOOOOONS

 

[Dog-O-Tron 5000v5.0]

Time is ripe for Null to buy all the MOONS cheap and make them the official currency of Kiwifarms!

 

[Spastic]

>Each subreddit had its own native token.

You need to explain this shit to me. What in the gods name.
Ok ok. So every subreddit has it's own dogecoin, which the moderators used as a rugpull scam.
Apparently they got another dogecoin 2.0 for doing this, because who in the jesus would buy a reddit dogecoin?
Does anyone involved in this actually get dollarinos? Or are they just shifting moon money for dogecoins and apparently that's worth 581747 cash. Which can't be realized.

What the fuck

 

[mlanguishi]

>Each subreddit had its own native token.

You need to explain this shit to me. What in the gods name.
Ok ok. So every subreddit has it's own dogecoin, which the moderators used as a rugpull scam.
Apparently they got another dogecoin 2.0 for doing this, because who in the jesus would buy a reddit dogecoin?
Does anyone involved in this actually get dollarinos? Or are they just shifting moon money for dogecoins and apparently that's worth 581747 cash. Which can't be realized.

What the fuck

I can't follow this really either, but it really seems they're doing what SBF and FTX wanted to do. Rug pull, make a new token, rug pull as long as they can and flee from the country before the pitchforks come..

 

[Spastic]

Yes, but they didn't get money for their scam.
Mlanguishi, they scammed people out of their monopoly money to get catan money.

 

[Agent Abe Caprine]

>Each subreddit had its own native token.

You need to explain this shit to me. What in the gods name.
Ok ok. So every subreddit has it's own dogecoin, which the moderators used as a rugpull scam.
Apparently they got another dogecoin 2.0 for doing this, because who in the jesus would buy a reddit dogecoin?
Does anyone involved in this actually get dollarinos? Or are they just shifting moon money for dogecoins and apparently that's worth 581747 cash. Which can't be realized.

What the fuck

We live in a world where r/breadstapledtotrees had a currency.

 

[Maggots on a Train v2]

Anybody who bought redditcoin as a long term investment deserves what they get. It amazes me that people pour money into a half dead website.

 

[Penis Drager 2.0]

I'm curious how insider speculation with shitcoins is actually policed.
Are there people that monitor the blockchains continuously to try and trace them to wallets on exchanges or what?

People go to prison for it occasionally. But how well this is actually tracked/enforced is questionable to say the least.

https://www.coindesk.com/tag/insider-trading/

 

[Vesperus]

Given the choice between being a reddit mod or having several grand in eth, I know what I'd do.

Fair play to them.

 

[dustbuster]

I'm curious how insider speculation with shitcoins is actually policed.

Can it count as "insider" if these are normal users and not employed by reddit?

 

[Safir]

On-chain data reveals that this moderator transferred more than 100,000 MOON over two different transactions on the Arbitrum Nova blockchain, turning it into more than $23,000 in Ether.

In another incident, just 17 minutes before Reddit’s statement, moderator u/Rider_of_the_storm allegedly shifted 345,422 MOON, worth over $69,000 at the time, to an exchange address.

Can anyone explain why those tokens would be worth these absurd sums of money in the first place? You don't just "convert" shitcoins to money, someone must decide to buy them. (no?)

Users could spend these points on badges and exclusive items for their avatars.

I can see why stopping this would be anti-consumer (omitting for now the nature and worth of peddit and its users), but it's easy to not make it so -- stop issuing new coins but continue to support buying badges with existing coins.

 

[Hitman One]

A gross breach of the Janny Creed, they are meant to Do It For Free.

 

[Uranus Pink]

A gross breach of the Janny Creed, they are meant to Do It For Free.

And they should be affixed to a wall and shoot with hockey pucks.

 

[indigoisviolet]

All reddit mods are child molesting transsexuals, but apparently insider trading on a free coin that website users "earn" by posting and accumulate by the tens of thousands without noticing is what really needs investigating.

 

[TowinKarz]

Anybody who bought redditcoin as a long term investment deserves what they get. It amazes me that people pour money into a half dead website.

Its amazing to me anyone pours any money into crypto who doesn't already have a plan to cash out before the bubble bursts.

Can any of these people who "invest" cite one case where everyone below the executive level in any of these schemes actually still had their original money, let alone profit, after a year? Or even 8 months?

If you're going in hoping to be the pump, but can't get out before the dump, that's one thing.

But most of these people are apparently, legitimately, thinking that this time it's GOT to be the one despite the fact that every one of these coin plans , big or small, collapse when the only thing that gives them value, speculation, can't sustain them.

If they don't, cite me one please.....

Can anyone explain why those tokens would be worth these absurd sums of money in the first place? You don't just "convert" shitcoins to money, someone must decide to buy them. (no?)

Financial illiteracy of your average 24/7 terminally-online person these days. They are told these things are unique (they are) and that everything that's unique is worth a LOT of money! (only true of unique things with demand) but it sounds so GOOD to people who've never interacted with the outside world, and just plausible enough of what they do know of finance to get them hooked, especially if they're techphiles like a Bob Chipman who believes there's just this magic internet gas that makes unsound ideas just work as long as you do it on social media.