Reddit mods dumped tokens hours before blockchain program termination

Controversy surrounds Reddit's decision to end blockchain-based community points program

Popular social network platform Reddit recently announced the wind-down of its blockchain-based community points program, citing scalability issues. However, the decision has sparked controversy within the crypto community, with many accusing Reddit of a rug-pull as the price of the native token on various subreddits plummeted after the announcement.

On-chain data suggests moderators may have been linked to token dumping

The moderators of several subreddits involved in the community points program claimed to be unaware of the decision at the time of the announcement. However, new on-chain data has raised questions about their involvement. Analysts have identified at least a couple of moderators who held large amounts of tokens and reportedly dumped them shortly before the official announcement.

Mcgillby: Transferring Moons and cashing out

One moderator, known as Mcgillby, transferred over 100,000 Moons in two separate transactions on the Arbitrum Nova blockchain, converting them into more than $23,000 worth of ETH. The moderator then deleted all of their previous Reddit posts.

Rider_of_the_storm: Shifting Moons ahead of the announcement

Another moderator, going by the name rider_of_the_storm, allegedly moved 345,422 Moons, valued at over $69,000, to an exchange address just 17 minutes before Reddit's official statement. The Reddit account associated with this moderator has since been deactivated.

Prior knowledge or coincidence?

On-chain data indicates that at least three administrators overseeing the cryptocurrency subreddit liquidated their tokens 20 to 30 minutes before the public announcement. A statement from Reddit moderators suggests they received notice about the program termination an hour earlier, raising suspicions that some moderators may have used this information to dump their token holdings.