When Reddit, the widely used social media platform, revealed its decision to end its blockchain-integrated community points program on October 17th due to scalability concerns, it inevitably caused a stir in the crypto space. Following this revelation, the prices of the intrinsic tokens associated with various subreddits plummeted, prompting many members to label the move a ‘rug-pull’. Each of these subreddit communities thrived with its own native token. For instance, Moons (MOON) and Bricks (BRICK) were the recognized tokens for r/CryptoCurrency and r/FortNiteBR respectively, which users could deploy to acquire unique badges and coveted avatar items.
Concerns over Moderator Actions
While the initial response from moderators of these Reddit communities portrayed them as being unaware of the impending announcement, new on-chain records now cast doubt on this narrative. These data highlight the suspicious actions of several moderators, suggesting possible insider knowledge. In particular, the activities of three moderator wallets have come under scrutiny. One of them, going by the name ‘Mcgillby’, conducted transactions involving over 100,000 Moons on the Arbitrum Nova blockchain. This move allowed them to convert these tokens into an impressive sum of over $23,000 worth of ETH before erasing their past interactions on Reddit.
Furthermore, another moderator named ‘rider_of_the_storm’ reportedly transferred a staggering 345,422 Moons, amounting to over $69,000, to an external exchange wallet. This transaction took place a mere 17 minutes before Reddit’s formal announcement. The Reddit profile of this individual was subsequently deactivated. Data analysis by Lookonchain has highlighted similar actions by at least three moderators, all seemingly in a rush to dispose of the tokens just moments before the program’s cessation was made public.
