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Reddit mods dumped tokens hours before blockchain program termination (cointelegraph.com)

submitted 8 months ago by lvxferre@lemmy.ml to c/snoocalypse@lemmy.ml

34 comments fedilink hide all child comments

Summary: Reddit warns mods that it's ending its crypto program, before it warns the other users. What could go wrong? /s

all 36 comments

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[-] givesomefucks@lemmy.world 77 points 8 months ago

When I heard this I knew they'd be stupid enough to tell people before it happened which means insider trading

[-] stolid_agnostic@lemmy.ml 16 points 8 months ago

I mean they kind of deserve it at this point.

[-] originalfrozenbanana@lemm.ee 1 points 8 months ago

Crypto continuing to speed run the history of financial regulations

[+] velox_vulnus@lemmy.ml 44 points 8 months ago

[deleted]

[-] Sanctus@lemmy.world 52 points 8 months ago

removed

[-] Astroturfed@lemmy.world 30 points 8 months ago

removed

[-] kelseybcool@lemmy.world 21 points 8 months ago

Ah, this comment provided needed context and sources to support the claims outlined above! Thank goodness the Internet is forever or knowledge and a sense of community like this would be pointless!

[-] Paradox@lemdro.id 15 points 8 months ago

[removed by reddit]

[-] Astroturfed@lemmy.world 8 points 8 months ago

removed

[-] Moonrise2473@lemmy.ml 15 points 8 months ago* (last edited 8 months ago)

If who committed inside trading has the power to delete any mention or discussion of his crime...

[-] Karyoplasma@discuss.tchncs.de 2 points 8 months ago* (last edited 8 months ago)

What actually consitutes the crime? Hearing about it and profiting from the change or the act of telling staff about these changes or both? And if both, are both punished equally or is telling a more serious offense?

[-] Moonrise2473@lemmy.ml 4 points 8 months ago* (last edited 8 months ago)

Suppose you have $1000 in stocks for XYZ inc. You're also in charge for their communication channel with the public

You're told from your boss that the company got badly hacked and will cease operation immediately, please write a public statement about that.

Instead of doing that, you use that insider info to call your broker and sell all your stocks for $1000. Then you go on the computer and write that public statement. The company is out of business and the stocks are now worth $0.01. But luckily you got out before the disaster, right? No, it's insider trading and it will send you to prison.

So IMHO both will be charged. The admins should have told only under NDA, the mods should not have sold (but for all that money? Who would have just accepted that 70k dollars are gone immediately?)

Now, this shitcoin was monopoly money, but for some reason people invested thousands on it. Selling everything after getting insider info is the definition of insider trading.

Maybe no investigation will occur because it was unregulated trading of monopoly money but who knows, why risking having multiple discussions about everything happened

[-] SatanicNotMessianic@lemmy.ml 1 points 8 months ago

Insider trading consists of using non-public information to profit on a trade.

Now since shitcoins are not a regulated security, I don’t know if they fall under insider trading laws. They may, however, fall under fraud and conspiracy to commit fraud laws. If they knowingly defrauded people into paying for what they were conspiring to make a worthless asset, or sold that asset under conditions they knew to be false, I could see them being charged.

[-] Astroturfed@lemmy.world 15 points 8 months ago

removed

[-] TurtleJoe@lemmy.world 1 points 8 months ago

It's being discussed on the gme meltdown sub as well as buttcoin.

[-] TWeaK@lemm.ee 39 points 8 months ago

I'm sure the SEC will be very interested to hear this, particularly as reddit staff are likely involved.

PAHAHH I can't even keep a straight face while typing that.

[-] SharkAttak@kbin.social 4 points 8 months ago

Wonder if it will somehow hinder their IPO, lol

[-] Album@lemmy.ca 3 points 8 months ago

Sec doesn't give a fuck. If pressured enough they will pretend by issuing fines that are a fraction of the profits made.

[-] Flyberius@hexbear.net 19 points 8 months ago

Absolutely fucking hilarious

[-] Pika@sh.itjust.works 16 points 8 months ago* (last edited 8 months ago)

concidering mods are not staff but volunteers on reddit, would this be concidered insider trading even? It's not like the mods are on payroll for reddit. If this information was shared on the reddit which is a public info source, it could also be deemed public knowledge at that point regardless if I understand it right.

edit: looking into it, it appears the info "might" have been shared an hour before launch in a moderator only call, if that's true I'm still curious if it was insider trading but it's definitly a bigger chance it is

[-] lvxferre@lemmy.ml 9 points 8 months ago

I'm not informed even in the laws of my own country, let alone some other country like USA. That said, based on this Wikipedia link, it would - because for a small time period, they didn't disclose the info at large, but only to a handful of individuals.

And regardless of the applicability of the law, on the best hypothesis it's Reddit Inc. doing stupid shit again, screwing with the userbase for no good reason, because whoever is in charge of the company is as insightful as a brick.

[-] PowerCrazy@lemmy.ml 15 points 8 months ago

Why did moderators have 100's of thousands of those things anyway, and who the hell was buying them?

[-] Moonrise2473@lemmy.ml 8 points 8 months ago* (last edited 8 months ago)

For some reason they thought it would gain value as an investment.

TBH I never saw a shitcoin holding value. Once the hype for the launch is gone, they always nosedive in value. You need to have some gambling issues to believe that no, this coin is special and this time it will gain value

Monopoly money is and will always be worthless

[-] LUHG_HANI@lemmy.world 5 points 8 months ago

So basically they dumped mods and admins moons before cancelling them? Of course they did.

[-] Maoo@hexbear.net 5 points 8 months ago

Hell yeah

[-] Mr_Buscemi@lemmy.blahaj.zone 5 points 8 months ago

I still know some people that mod on reddit. Gonna ask if any were notified by reddit like these peeps lol.

And does this have any ties to the Fortnite subreddits with their own crypto stuff that came out earlier this year? I had almost modded that sub this year but decided against it when I found out they were dealing with crypto crap.

[-] lvxferre@lemmy.ml 4 points 8 months ago

Well, the article only mentions shady trade with $moons from r/CryptoCurrency, not with $bricks from r/FortNiteBR. However I'm not surprised if some investigation dug some shit with other subreddits too, so perhaps you avoided a lot of future annoyance in your life?

[-] UlyssesT@hexbear.net 3 points 8 months ago

The new and exciting revolutionary version of Wall Street can uplift humanity and save the planet by having the same old grifts with a new coat of paint, less associations with tangible objects, and also a much larger carbon footprint per transaction! morshupls

[-] lvxferre@lemmy.ml 2 points 8 months ago

I don't disagree with you that this shit shouldn't've even started on first place. It's just Reddit trying to milk its userbase, and the world be damned, as usual.

However, once started, Reddit had the responsibility to bring its closure in a fair way. And by "fair" I mean not "tipping" some individuals before the userbase at large knew it, so they could trade them off before the price crashed.

[-] UlyssesT@hexbear.net 2 points 8 months ago

I know that. My point is that those "tokens" and related cryptogrifts are just a sillier and even less tangible Wall Street, complete with insider trading and golden parachutes.

[-] lvxferre@lemmy.ml 2 points 8 months ago

Fair point.

[-] Send_me_nude_girls@feddit.de 3 points 8 months ago

Money laundering.

[-] TWeaK@lemm.ee 10 points 8 months ago

It's not money laundering, but it is insider trading.

[-] Hotzilla@sopuli.xyz 2 points 8 months ago

Dondong, both can be true, they are not mutually exclusive.

[-] TWeaK@lemm.ee 5 points 8 months ago

True enough, but there's no indication of money laundering.

this post was submitted on 20 Oct 2023

270 points (99.3% liked)

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