{"id":86028,"date":"2023-10-20T18:06:08","date_gmt":"2023-10-20T15:06:08","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=86028"},"modified":"2025-09-13T02:56:00","modified_gmt":"2025-09-12T23:56:00","slug":"reddit-admins-accused-of-insider-trading-of-community-points-tokens","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/reddit-admins-accused-of-insider-trading-of-community-points-tokens\/","title":{"rendered":"Reddit admins accused of insider trading of Community Points tokens"},"content":{"rendered":"<p>At least three Reddit moderators dumped Community Points loyalty program tokens before the social media platform publicly announced the closure of the initiative.<\/p>\n<blockquote class=\\\"twitter-tweet\\\" data-lang=\\\"en\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">1\/ Three <a href=\\\"https:\/\/twitter.com\/CCMOD_?ref_src=twsrc%5Etfw\\\">@CCMOD_<\/a> moderators dumped <a href=\\\"https:\/\/twitter.com\/search?q=%24MOON&#038;src=ctag&#038;ref_src=twsrc%5Etfw\\\">$MOON<\/a> in advance via <a href=\\\"https:\/\/twitter.com\/hashtag\/inside?src=hash&#038;ref_src=twsrc%5Etfw\\\">#inside<\/a> information from <a href=\\\"https:\/\/twitter.com\/Reddit?ref_src=twsrc%5Etfw\\\">@Reddit<\/a> admins. <a href=\\\"https:\/\/t.co\/ucrPkh6siX\\\">pic.twitter.com\/ucrPkh6siX<\/a><\/p>\n<p>\u2014 Lookonchain (@lookonchain) <a href=\\\"https:\/\/twitter.com\/lookonchain\/status\/1714851956995555816?ref_src=twsrc%5Etfw\\\">October 19, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>In May 2020 the social network launched the program in beta testing mode to reward users for posting content. As part of Community Points, the assets use the <a href=\"https:\/\/forklog.com\/en\/news\/what-are-erc-20-tokens\">ERC-20<\/a> standard on the Ethereum network.<\/p>\n<p><a href=\"https:\/\/forklog.com\/en\/news\/reddit-to-move-tokens-to-ethereum-mainnet-via-arbitrum\">To scale<\/a> the initiative, the platform used the <a href=\"https:\/\/forklog.com\/en\/news\/what-is-a-layer%e2%80%912-solution-in-blockchain\">second-layer<\/a> solution Arbitrum.<\/p>\n<p>Subreddit participants received different tokens. For example, in the r\/Cryptocurrency thread they were MOONS, and in r\/FortniteBR \u2014 BRICKS.<\/p>\n<p>On October 17 Reddit <a href=\\\"https:\/\/www.reddit.com\/r\/CryptoCurrency\/comments\/17a33ql\/comment\/k5ahcpu\/?utm_source=reddit&#038;utm_medium=web2x&#038;context=3\\\">announced<\/a> the winding down of Community Points. The team attributed it to unreasonably high resource costs for the initiative and suggested that there might be more scalable solutions to incentivise loyalty.<\/p>\n<p>Lookonchain experts found that 23 minutes before the post was published, 109 MOONS were sold for about $23 000. <\/p>\n<p>Five minutes later, 346 422 MOONS (~$56 000) were liquidated, followed by another 363 227 (~$59 000).<\/p>\n<p>According to on-chain analyst nicknamed Pledditor, the admins learned of the closure about an hour before the decision was published, and three of them disposed of the tokens. The sell-off caused price slippage of roughly 22% even before the platform&#8217;s announcement. After it, asset prices finally collapsed.<\/p>\n<blockquote class=\\\"twitter-tweet\\\" data-lang=\\\"en\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">.<a href=\\\"https:\/\/twitter.com\/Reddit?ref_src=twsrc%5Etfw\\\">@Reddit<\/a> admins told \/r\/CryptoCurrency moderators beforehand, and 3 moderators sold <a href=\\\"https:\/\/twitter.com\/search?q=%24MOON&#038;src=ctag&#038;ref_src=twsrc%5Etfw\\\">$MOON<\/a> tokens on insider information<a href=\\\"https:\/\/twitter.com\/search?q=%24MOON&#038;src=ctag&#038;ref_src=twsrc%5Etfw\\\">$MOON<\/a> price dropped -22% minutes before the announcement was posted<\/p>\n<p>Here is a list of Reddit moderators acting on inside information BEFORE the announcement: <a href=\\\"https:\/\/t.co\/xAh75hOVEa\\\">pic.twitter.com\/xAh75hOVEa<\/a><\/p>\n<p>\u2014 Pledditor (@Pledditor) <a href=\\\"https:\/\/twitter.com\/Pledditor\/status\/1714610041699930439?ref_src=twsrc%5Etfw\\\">October 18, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>In July 2022, Reddit announced another <a href=\"https:\/\/forklog.com\/en\/news\/reddits-collectible-avatar-owners-near-10-million\">blockchain initiative<\/a> \u2014 collectible <a href=\"https:\/\/forklog.com\/en\/news\/what-are-nfts\">NFT<\/a>-avatars on <a href=\"https:\/\/forklog.com\/en\/news\/what-is-polygon-matic\">Polygon<\/a>.<\/p>\n<p>In May, the number of holders of the limited-series tokens <a href=\"https:\/\/forklog.com\/en\/news\/reddits-collectible-avatar-owners-near-10-million\">neared 10 million<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>At least three Reddit moderators dumped Community Points loyalty program tokens before the social media platform publicly announced the closure of the initiative.<\/p>\n","protected":false},"author":1,"featured_media":86029,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1400,596],"class_list":["post-86028","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-reddit","tag-tokens"],"aioseo_notices":[],"amp_enabled":true,"views":"39","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/86028","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=86028"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/86028\/revisions"}],"predecessor-version":[{"id":86030,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/86028\/revisions\/86030"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/86029"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=86028"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=86028"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=86028"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}