At the time of the announcement, the moderators of most of the subreddits involved with the community points program claimed to be unaware of the decision.

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

  • givesomefucks@lemmy.worldEnglish
    77·
    1 year ago

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

    • Moonrise2473@lemmy.ml
      15·
      1 year ago

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

      • Karyoplasma@discuss.tchncs.de
        2·
        1 year 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·
          1 year 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·
          1 year 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.

  • TWeaK@lemm.eeEnglish
    39·
    1 year 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.

  • Pika@sh.itjust.worksEnglish
    16·
    1 year 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.mlOPM
      9·
      1 year 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
    205·
    1 year ago

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

    • Moonrise2473@lemmy.ml
      91·
      1 year 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@lemmy.world
    5·
    1 year ago

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

  • Mr_Buscemi@lemmy.blahaj.zoneEnglish
    5·
    1 year 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.mlOPM
      4·
      1 year 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?