On October 18, a new twist emerged in the alleged rug pull scandal involving social media platform Reddit. A crypto analyst claimed that several subreddit moderators were aware of the decision to shut down the Reddit Community Points (RCP) program and sold their RCP tokens, known as MOONs, just before the token’s value plummeted by 85%. The Reddit admins allegedly tipped off three moderators of the /r/CryptoCurrency subreddit, who then sold their holdings before the official announcement. The analyst provided transaction hashes as proof of the sales and pointed out that the MOON token price had already fallen 22% before the announcement, suggesting insider trading. Other moderators also sold their tokens immediately after the announcement. The conversations between moderators discussing the situation were shared on Reddit and Twitter. One moderator claimed that Reddit admins had informed them that the RCP program was not generating revenue for the platform. Another moderator hinted at a possible airdrop and stated that they would continue to work with MOON independently. The article also provides background information on the Community Points program and its initial public reaction. It explains that users could earn MOONs by creating popular posts or comments, and the tokens could be converted into actual money. However, the process was complicated and not widely used. The MOON token experienced a surge in value after being listed on crypto exchanges in 2022 and 2023 but dropped to $0.03 within minutes after Reddit announced the closure of the RCP program. Reddit’s director of consumer and product communications partially attributed the decision to regulatory challenges and the high cost of resourcing the program. The community accused Reddit of rug-pulling and cutting their life savings.

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Information	Details
Geography	North America
Countries	🇦🇲
Sentiment	negative
Relevance Score	1
People	/u/IHaventEvenGotADog, /u/rider_of_the_storm, /u/Mcgillby, @Pledditor, /u/TNGSystems
Companies	Reddit, MEXC crypto exchange, MOON token, RCP token, /r/CryptoCurrency subreddit, Kraken exchange
Currencies	r/CryptoCurrency Moons
Securities	None