On Tuesday, Reddit, the social media news platform, announced its intention to discontinue its Community Points project. This announcement had immediate repercussions on two specific cryptocurrencies associated with subreddits r/cryptocurrency and r/fortnite, leading to a marked depreciation in their value. The unfolding situation also incited considerable consternation among Reddit users, sparking intense discussions and disagreements regarding the termination of the Community Points initiative.
Widespread Discontent Among Reddit Users as Community Points Initiative Comes to an End
Although not universally recognized, the cryptocurrencies MOON and BRICK have experienced a considerable decrease in value within the last 24 hours. This decline is directly attributable to Reddit’s decision to cease its Community Points program, with the termination scheduled for November 8, 2023. Although Reddit has removed the official FAQ page for the Community Points project, archived versions of the page remain available for reference.
First reported by TechCrunch, further details about the decision were provided by Tim Rathschmidt, Reddit’s Director of Consumer and Product Communications. Rathschmidt indicated to TechCrunch’s Morgan Sung that the decision to halt the project stemmed from an analysis of resource allocation and future potential. “While we perceived future possibilities with Community Points, the resources required could not be justified,” he stated. Rathschmidt also acknowledged that regulatory considerations were a part of the decision-making process.
Following the broad distribution of this news across cryptocurrency and Reddit communities, both MOON and BRICK cryptocurrencies suffered steep declines in value. Specifically, MOON, the coin associated with the r/cryptocurrency subreddit, fell by 84%, while the r/fortnite-associated token BRICK depreciated by nearly 40%. Notably, many users within the r/cryptocurrency subreddit expressed their dissatisfaction with these developments. A subreddit moderator commented:
We were not informed of Reddit’s decision until just an hour before the announcement was made public.
Other users criticized the decision vehemently. One user lamented the significant investments of time and money that had been poured into the now-terminated project, accusing Reddit of acting in bad faith.
Within these discussions, a Bitcoin maximalist offered an alternative perspective: “MOONS was an ill-conceived project based on pump-and-dump schemes that primarily benefited a few moderators,” said the user named Fiach_Dubh. “Unlike decentralized networks like Bitcoin, Reddit should consider adopting Bitcoin’s second layer, the Lightning Network, for community points.” This stance was met with opposition from other users.
The Community Points tokens, which originated in 2021, had created substantial expectations among the Reddit community. Many users had expected the initiative to continue for several more years. A minority have even expressed an intention to sustain these projects independently of Reddit’s support. At present, MOON has a total ecosystem of 126,013,438 tokens distributed among 211,104 unique holders. A significant 66.72% of these tokens are held by the top 100 MOON holders. In contrast, there are approximately 115,217,218 BRICK tokens held across 156,945 unique addresses. Similar to MOON, the majority, or 70.14%, of BRICK tokens are controlled by the top 100 holders.
What are your opinions on Reddit’s decision to terminate the Community Points blockchain initiative? We invite you to share your thoughts and perspectives on this matter in the comments section below.
Frequently Asked Questions (FAQs) about Cryptocurrency Decline
What led to the decline in the value of MOON and BRICK cryptocurrencies?
The decline in the value of MOON and BRICK cryptocurrencies was triggered by Reddit’s announcement to discontinue its Community Points project. This decision resulted in a loss of confidence in these tokens and prompted a significant sell-off.
Why did Reddit decide to terminate the Community Points program?
Reddit cited resource allocation and the high cost of maintaining the Community Points program as reasons for its termination. Additionally, regulatory considerations played a role in the decision to discontinue the initiative.
How did Reddit users react to the news of the program’s termination?
Reddit users expressed widespread dissatisfaction and frustration with Reddit’s decision. Many felt blindsided by the announcement and voiced concerns about the time and money they had invested in the project.
What alternative perspective was offered by a Bitcoin maximalist?
A Bitcoin maximalist suggested that Reddit should consider adopting Bitcoin’s second layer, the Lightning Network, as a more robust and decentralized solution for community points, contrasting it with the Community Points project’s perceived shortcomings.
What is the current distribution of MOON and BRICK tokens among holders?
As of now, MOON tokens have a total of 126,013,438 tokens distributed among 211,104 unique holders, with the top 100 holders owning 66.72% of the supply. In the case of BRICK tokens, there are approximately 115,217,218 tokens held across 156,945 unique addresses, with the top 100 holders possessing 70.14% of the BRICK tokens in circulation.
More about Cryptocurrency Decline
- Reddit’s Announcement on Community Points
- TechCrunch Article on Reddit’s Decision
- Bitcoin Lightning Network Information
- MOON and BRICK Token Distribution