Reddit Forum Moderators Discard Reward Tokens Hours Before Program Shutdown Data analyst
Pledditor has revealed that three moderators linked to Reddit's cryptocurrency forum sold over 100,000 MOON tokens before its Community Point program shut down. According to Reddit’s announcement
on October 17, the platform disclosed
its plans to discontinue its long-running blockchain-based rewards service ‘Community Points’ by November 8.
These Community Points are
ERC-20 tokens minted on the Ethereum chain but scaled later to the Arbitrum Nova scaling network. Members could redeem the tokens to
purchase badges, GIFs, and other features on Reddit. Reddit’s reason for its discontinuation borders
on the difficulties with regulation and scalability concerns.
While Community Points
presented vast opportunities, there was no pathway to scale it broadly across its ecosystem. However, the data from Pledditor reveal
that the three moderators acted on insider information by selling significant quantities of MOONs, the native token of the r/CryptoCurrency community.
