There’s a seismic shift happening in the Reddit universe. The “Reddit-Based Tokens Plunge on Report of Wind Down of Community Points” news has sent shockwaves throughout the crypto community. According to reports, Reddit is considering winding down its blockchain-based Community Points program, which has been operational for about three years. The impact is already being felt with a significant drop in the value of native tokens.
The Winding Down of Community Points Program
Reddit’s director of consumer and product communications, Tim Rathschmidt, revealed to TechCrunch that the decision was not an easy one. The company saw potential in the Community Points program, but the resources required to maintain it were too high to justify. Adding to the complexity was the evolving regulatory environment.
Impact on Native Tokens
The news has had a significant impact on the value of native tokens associated with Reddit’s communities. Moons (MOON), the native token of Reddit’s r/CryptoCurrency community, has seen an 85% drop in value. Bricks (BRICK), which are distributed as a reward for contributions in the r/Fortnite subreddit, have fallen by 67%. Even Donut (DONUT), the token representing community points of the r/ethtrader subreddit, has taken a 66% hit.
What’s Next for Reddit?
Despite the winding down of the Community Points program, Reddit is not abandoning its pursuit of innovative solutions. Rathschmidt indicated that the company has already launched or is actively investing in several products that achieve what the Community Points program was trying to accomplish, but in a more user-friendly and understandable manner.
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