Three moderators associated with the r/CryptoCurrency subreddit sold MOON tokens after receiving insider tips about an announcement from Reddit before it went public.
The announcement centers on plans to sunset the token, and others linked to the Reddit reward program. According to Lookonchain, the sales of MOON came before the price of the token tanked, shielding the two moderators from the losses most investors faced.
3/
0xcdd9 approved $MOON to sell 2 mins before the announcement and sold 363,227 $MOON for 38 $ETH($59K).https://t.co/tfswSQlPNZ pic.twitter.com/XGX1zWw6lv
— Lookonchain (@lookonchain) October 19, 2023
The Crooked Money Play
Per the insight, the three moderators dumped their tokens within a short time interval. One moderator with the address 0x27bD traded 109,931 MOON for 15 ETH, valued at $23,000 at the time. This moderator notably placed the sell order 23 minutes before the sunsetting announcement went live.
The second moderator, 0x6886, transferred and sold 346,422 MOON about 17 minutes before the team made the announcement. The last recorded MOON sale came from the owner of the address “0xcdd9,” just 2 minutes before the team published the news. This moderator sold a total of 363,227 MOON for 38 ETH valued at $59,000.
The news to sunset MOON alongside DONUT and BRICK marked a pivotal moment for the crypto community on Reddit, which relies on the incentivisation model powered by the tokens. The team’s rationale hinges on the sustainability of the model and growing regulatory concerns.
Amid the plan to effect the changes in November, holders of the three assets panic-sold, driving their prices to multi-month lows.
MOON Recovery Sighted
Meanwhile, in a dramatic twist, MOON is showcasing a bullish recovery at the time of writing. Market data pegs the price of MOON at $0.041, up 25% in 24 hours. A 53% surge in its trading volume further bolsters this MOON valuation, showcasing proof that interest is returning.
Despite the prevalence of insider trading moves in the industry, that from the Reddit community underscores the fears of most regulators regarding how some crypto projects do not place a premium on investors’ interests.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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