Reddit ending community points program, MOON, BRICK, DONUT tokens plunge

October 17, 2023 10:33 PM PDT | By Invezz

Reddit ending community points program, MOON, BRICK, DONUT tokens plunge — Image source: Invezz

Regulatory and scalability challenges

The decision to discontinue the program was influenced by several factors, including regulatory challenges and scalability limitations.

The Reddit team member expressed that despite seeing potential in Community Points, there was no feasible way to scale it across the platform. The changing regulatory environment further exacerbated the program’s limitations, making it increasingly challenging to maintain.

Reddit tokens plunge

The announcement of the program’s closure had a direct impact on the associated tokens. MOON, which served as the native asset for the r/cryptocurrency subreddit, experienced an alarming drop of over 85% in value over the course of 24 hours.

BRICK saw a decline of approximately 50.65%, while DONUT’s value dropped by nearly 48% during the same period.

The sudden and substantial token value decline led to speculations among some users that Reddit’s decision resembled a “rug pull.”

A rug pull is a malicious tactic where developers abandon a project, leaving investors with significant losses. Regardless of whether this accusation is genuine or sarcastic, the impact on token holders remains considerable.

What the fuck, Reddit (yes actually the company Reddit) just rugged their users by "discontinuing" their native cryptocurrency.

-90% just like that. pic.twitter.com/lzuqs1KNsX
— Byzantine General (@ByzGeneral) October 17, 2023

As Reddit winds down the Community Points program, the tokens’ value and the disappointment of affected users have garnered attention within the cryptocurrency community. The decision is a significant development for both Reddit and the crypto enthusiasts who engaged with the program, and it underlines the challenges of integrating blockchain technology and rewards systems into large-scale social platforms.

The post Reddit ending community points program, MOON, BRICK, DONUT tokens plunge appeared first on Invezz.

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