Reddit's "Community Points" Program to Be Discontinued: A Plunge in MOON Token Price by Over 80%

TechCrunch reports that Reddit is discontinuing its Community Points program, causing a drastic drop in the prices of MOON, BRICK, and DONUT tokens.

Discover the reasons behind this decision and its immediate impact on the crypto market.

End of Community Points Offering

It has been revealed through a report by TechCrunch that Reddit is discontinuing its "Community Points" tokens such as "MOON," "BRICK," and "DONUT."

These tokens, based on the ERC-20 standard, have been offered since 2020 and were applicable to various subreddits including "r/CryptoCurrency," "r/Fortnite," and "r/ethtrader."

The tokens garnered attention since their introduction. Particularly, the prices of MOON and BRICK soared following an announcement by Kraken in August this year.

However, the report about the discontinuation has caused a price collapse of these tokens by approximately 50% to 80%.

What's the Reason for Discontinuing Community Points?

According to TechCrunch, Tim Raschmit, the Director of Consumer & Product Communications at Reddit, stated, "We believed that there were future opportunities for Community Points, but unfortunately, the required resources were too high to justify the continuation."

Though we saw some future opportunities for Community Points, the resourcing needed was unfortunately too high to justify,

The regulatory environment has since added to that effort. Though the moderators and communities that supported Community Points have been incredible partners — as it’s evolved, the product is no longer set up to scale.

Another reason cited for the discontinuation is that Reddit is either already offering or actively investing in multiple products that are easier to implement and understand than what the Community Points program aimed for.

Impact on MOON, BRICK, and DONUT Prices

In Reddit’s Community Points program, tokens such as "MOON," "BRICK," and "DONUT" were issued. Due to the recent report, these tokens have experienced a drastic price drop of around 50% to 80%.

Notably, the token "MOON" from the subreddit "r/CryptoCurrency" has been hit the hardest. Its price has plummeted from around $0.23 to approximately $0.035, with a 24-hour drop rate of 86.48% at the time of this article's writing.