Reddit Crypto MOON Tokens Could Continue Despite Insider Trading Issues
Reddit's "Community Points" program was shut down due to scaling issues.
Key Takeaways
- Reddit’s “Community Points” program was abruptly shut down due to scaling issues.
- Moderators who sold the subreddit’s native token MOON were punished for insider trading.
- The future of the MOON remains uncertain, with discussions ongoing about potential solutions.
Reddit shut down Community Points, a blockchain-based internet points program created to reward developers and artists, on October 17, citing scaling problems. Through native coins like MOON, the program allowed users to accumulate and spend community points.
The moderators who had exchanged the subreddit’s native token MOON minutes before Reddit announced its plan to stop its Community Points program have been dismissed by the 6.9 million user-strong r/CryptoCurrency community on Reddit.
Community Ousts Moderators for Pre-Announcement MOON Sales
“All the moderators who sold Moons before the announcement have already been removed from the mod team,” r/CryptoCurrency stated .
Many members of the investing community were outraged by the insider trading; some demanded that moderators be subjected to regulatory punishment, while others questioned Reddit’s choice to alert moderators in advance.
According to data compiled by on-chain detective Lookonchain , moderators sold 456,353 MOON, which was then valued at $92,000, just 30 minutes prior to the announcement. Two minutes prior to the news, a sizable tranche of 363,227 MOON entered the market, adding to the selling pressure.
MOON Plummets by 85% After Announcement Sparks Outrage
The ERC-20 token MOON, which may be freely exchanged, tipped, or used in the community for many purposes, is given to users as payment for their posts or comments on the r/CryptoCurrency subreddit. On account of the Reddit announcement, the token decreased by approximately 85% to $0.0198.
According to the r/CryptoCurrencyMoons subreddit, moderators were notified an hour in advance of Reddit’s planned decision. The episode underlines the difficulties of regulating cryptocurrency markets.
Many members of the investing community were outraged by the insider trading; some demanded that moderators be subjected to regulatory punishment, while others questioned Reddit’s choice to alert moderators in advance.
The SEC should be notified about anyone who sold before the announcement. Insider trading cannot result in one’s self-removal, according to Bucksaway03 .
Moon Is Here To Stay
The MOON token‘s future is currently the topic of discussion on the r/CryptoCurrency subreddit .
“There is a proposal to solve the situation by u/mellon98 – core contributor and MoonsDust’s founder, and we’re brainstorming about Moons’ future —waiting for Reddit’s decision on whether they’ll transfer the contract to us or a burn address,” stated r/CryptoCurrency.
Either way, Moons are here to stay,” r/CryptoCurrency added .
A close examination of the causes of this abrupt fall reveals a recent Reddit statement. The platform decided to end the Community Points beta by the beginning of November.
Users will therefore stop accumulating points in their Reddit Vault. This is especially significant because MOON’s Community Points system was one of its main features, increasing demand and encouraging user participation.
In many ways, the intrinsic worth of MOON was dependent on this ecology.
The community has expressed displeasure over the product’s inability to scale to meet demand throughout the platform and the decision to focus resources on other features like the Contributor Programme and subreddit karma.
It is clear that throughout this downturn, trading volume has dramatically grown. This increase in activity can be explained by a mass exodus or sell-off of disappointed investors looking to minimize their losses.
A picture of panic selling is painted by the lengthy bearish candles and huge trading volumes, which further accelerate the slide.
