- Reddit announces the closure of its blockchain-backed Community Points program after roughly three years.
- Following the news, token values of MOON, BRICK, and DONUT witness a drastic fall ranging from 60%-90%.
Reddit’s Community Points Program Meets Its End
In a surprising move that has left many blockchain enthusiasts in a daze, Reddit has decided to pull the plug on its Community Points initiative that’s been operational for about three years. This blockchain-centered program was a unique endeavor aimed at fostering engagement and rewarding contributors within the Reddit community. However, the challenges in sustaining it seem to have outweighed the perceived benefits.
Tim Rathschmidt, the spokesperson for Reddit in charge of consumer and product communications, relayed the platform’s stance to TechCrunch. He shared,
“While the potential of Community Points was undeniable, the resources it demanded turned out to be a bit overwhelming.”
Rathschmidt also hinted at the complexities arising from the evolving regulatory landscape as a factor influencing this decision.
Ripple Effects: Blockchain Tokens Take a Hit
The market didn’t take long to react to this news. Moons (MOON), a token intrinsic to Reddit’s r/CryptoCurrency community, experienced a sharp decline of 85% in its value. Similarly, Bricks (BRICK), which were awarded to contributors in the r/Fortnite subreddit, saw their value decrease by 67%. Not far behind, the Donut (DONUT) token, symbolizing community points within the r/ethtrader subreddit, also faced a slump, with its value dipping by 66%.
Rathschmidt further clarified Reddit’s strategic shift,
“The rationale behind transitioning away from this product lies in our endeavors elsewhere. We’ve either already unveiled or are in the process of developing several products. These alternatives not only encapsulate the essence of what Community Points aimed to achieve but are also more user-friendly and straightforward in their approach.”
The decision, while strategic for Reddit, undoubtedly leaves a mark on the blockchain community. As platforms evolve and adapt, the intertwining of blockchain technology and community engagement continues to be a space to watch closely.