Key Takeaways:
- Reddit’s MOON token recovered after an 85% plunge on Oct. 17.
- Several users have alleged Reddit moderators of insider trading.
- Moderators plan to continue the MOON project.
NEW DELHI (CoinChapter.com) — Days after Reddit’s MOON token crashed and burned over 85% of its price tag, the blame games continue.
In an X post, a user highlighted the statement of one of the Reddit moderators who sold his MOON tokens immediately after Reddit announced it was shelving the project. TNGSystems, a Reddit moderator, was among the first to dump his MOON token holdings.
In the statement, TNGSystems claimed that he had to sell his MOON tokens to ensure a “safety blanket” for his family. Furthermore, the moderator claimed he was not decisive on selling even after Reddit shared its decision.
TNGSystems claimed that he would have sold his tokens within seconds of the announcement if he was pre-decided on dumping. However, the moderator stated he sold his tokens to ensure he earned something for all his contributions.
At the end of the day I decided to take a guaranteed chunk of cash in return for my contributions, time and energy rather than wondering if the system can be built back up by mods
TNGSystems stated
The moderator claimed that trading crypto tokens was a “zero-sum game,” referring to a situation where an individual’s gains result in another’s loss, resulting in zero net change in wealth or benefit.
Interestingly, TNGSystems had criticized John Karony, CEO of Safemoon, when Karony allegedly withdrew funds by selling tokens from liquidity pools. The moderator had stated, “I couldn’t live with the fact that I had screwed people over for money.”
Guess he can.
MOON Token Price Starts Recovering
Following the day of the crash, MOON token price gained over 10% to close trading on Oct. 18 at $0.039. Bulls continued the rally on Oct. 19, with the token spiking 28% to reach a daily high near $0.048 before bears pared gains.
Bulls now face the resistance near $0.051 that they must conquer to infuse confidence in MOON’s rally. Moreover, breaking and consolidating above the immediate resistance could help the MOON price spike nearly 49% to target the resistance near $0.069.
A confirmed break above $0.051 might result in traders opening long positions with a $0.069 target.
Conversely, bears would try to push the MOON price to the support near $0.032. Moreover, breaking below the immediate support could force the token to test the support near $0.02 before recovering.
The RSI for MOON remained oversold, scoring 20.02 on the daily charts.
MOON Revival Plans?
Several users criticized Reddit for its sudden shelving of the MOON project, with one X user stating obsession with Web 3.0 corroded Reddit and its moderators’ ethics.
Another user asked the crypto exchange Kraken if it planned to remove crypto tokens associated with Reddit.
Meanwhile, Reddit moderators were interested in “continuing the project moving forward.”
Moreover, the post stated that moderators involved in insider trading had been removed from the mod team. Additionally, the moderators claimed that admins did not sell their MOON tokens and would send their token holdings to a burner wallet.
Another post proposed some ideas if mods started to run the project, including a changed distribution rate and an increased decay rate. The distribution rate would consider the extra load on mods to run the project, with the user proposing increased rewards to mods.
Meanwhile, several users commented on the pros and cons of investing in cryptos, pointing out incidents like the Terra LUNA collapse as an example of crypto investments being bad.
