Reddit Is Phasing Out Crypto-Powered Community Points Reward Tokens; MOON Plunges Over 80%

Reddit, the popular social media platform, is planning to eliminate its crypto-powered “Community Points” reward tokens, according to a report by TechCrunch. 

What Happened: The tokens, which were introduced three years ago, aimed to incentivize high-quality contributions from Reddit users. However, Reddit intends to completely phase out these tokens by November 8.

Initially minted on the Ethereum ETH/USD network, the Community Points are ERC-20 tokens that were later shifted to the scaling network Arbitrum Nova. Users could redeem these tokens for various perks on Reddit, including badges, emotes, GIFs, and other features.

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Why It Matters: This led to a decline in the value of the two tokens called MOON and BRICK. MOON, associated with the r/Cryptocurrency subreddit, has experienced an 80% drop, currently priced at $0.035. Similarly, BRICK, earned from the r/FortniteBR subreddit, has seen a 46% decrease over the past 24 hours, now valued at $0.041.

The decision to sunset the Community Points program raises questions about Reddit’s shift away from one of its core crypto integrations. Tim Rathschmidt, Reddit’s Director of Consumer and Products Communications, explained to TechCrunch that the resources required to maintain the program were too high to justify. However, he did not disclose further details.

Price Action: At the time of writing, ETH was trading at $1,568.64 down 0.31% in the last 24 hours, according to Benzinga Pro.

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Photo via Shutterstock

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