Moderators responsible for overseeing Reddit’s largest crypto forum have been fired amid allegations that they sold off the subreddit’s native MOON token minutes before the platform canceled its crypto rewards program.
That’s according to CoinDesk and a message from the r/Cryptocurrency team that read, “All the moderators who sold Moons before the announcement have already been removed from the mod team.”
MOON could previously be distributed, traded, or spent as part of Reddit’s blockchain-based community points program. However, it was announced last Tuesday that the program was to shut down by November 8.
Reddit admins reportedly informed moderators in charge of the r/Cryptocurrency thread of the upcoming cancellation one hour before its announcement. Cryptosleuths claim that, within the hour, three moderators dumped their holdings before the news broke publicly.
At least 456,353 MOON tokens worth $92,000 were reportedly sold by the fired moderators. The Moon tokens dropped in price by 21% before the announcement and 85% following the news of the cancellation.
Announcing the move, Reddit said that the program was lacking “an outsized commitment to resources.” It added, “Though the moderators and communities that supported Community Points have been incredible partners — as it’s evolved, the product is no longer set up to scale.”
Many users on the r/Cryptomoons subreddit are still figuring out what to do with their tokens, while others are attempting to come up with a solution that will allow them to continue using Moon Tokens without Reddit’s input.