A decent number of Subreddit moderators sold their Subreddit token holding just before Reddit’s official announcement of the crypto community program termination.
Reddit is a popular social network platform that introduced crypto & blockchain technology use in its ecosystem three years ago. On 17 Oct 2023, Reddit announced the termination of its Subreddit crypto community token reward point system.
Under this program, cryptocurrency-focused subreddits were able to run their native token & token holders were able to get exclusive access passes to show activity in the Subreddit community.
The Reddit team stated that Crypto networks are not much better for such types of uses, as there is very little scalability.
However, the Reddit team took this decision creating a better ecosystem for the Reddit users but in return, this decision ended up in a very big controversy. The majority of the crypto Subreddit users called this move similar to the “rug & pull” game.
Reportedly some of the Subreddit moderators sold thousands of dollars worth of their corresponding Subreddit tokens, just before Reddit’s official announcement.
In the initial days of this blockchain crypto token reward termination news, people blindly admitted that tokens crashed because of high sell pressure but investigation by crypto analytic platforms showed that some moderators sold their tokens several minutes before the announcement.
Pledditor noted that Moon token, a token corresponding to the r/Cryptocurrency Subreddit, dumped 22% before the announcement. And this was not the case for this token, also other similar tokens were involved.
As per available investigation reports, 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.
However, the majority of the Subreddit moderators claimed that they weren’t able to sell the tokens before the announcement as they were not aware of this news but a statement from a Reddit moderator confirmed that they passed information to the Subreddit moderators just 1 before the official public announcement.
Read also: JPMorgan’s experts believe multiple Bitcoin spot ETFs will be approved within months
Reddit crypto community closure raises big controversy
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