Here, you can see mold spores growing on the paper insulation. Since air flows into the upper levels of your home from the crawl space, it bring the humidity from the crawl space with it affecting your home. First off, paper-faced insulation is like candy to mold because it loves paper even more than wood. Mold grows on fiberglass insulation because it has some organic material in the resin used to set the fibers. This vent on the wall is allowing the outside air to enter the crawlspace, not helping the humidity issue.