Reddit’s cryptocurrencies in free fall. The social network has confirmed the imminent end of its rewards program, which was based on two cryptocurrencies: MOON and BRICK. The unexpected move leaves investors without a solution, faced with assets that no longer serve any purpose.
Reddit says goodbye to its cryptocurrencies
The news, announced suddenly late yesterday, came as a surprise to users. As a reminder, Reddit’s “Community Points” service allowed contributors to be rewarded for their comments or posts, with cryptocurrencies: the MOON and the BRICK. This was a test launched in 2020, and it was felt at the time that Reddit might extend these cryptocurrency rewards to its entire site.
But this will not be the case. In a press release, the moderation teams announce that as of November 8, “Community Points” will no longer be available. Except that MOON and BRICK are indeed Arbitrum-based cryptocurrencies. And they were – until now – valuable. But now they’ve suddenly lost their usefulness.
The result is a catastrophic fall in the prices of these two assets. The MOON cryptocurrency, emblematic of the /r/cryptocurrency discussion forum, plummeted by -86% in the space of an hour:
For BRICKS, it’s the same scenario. It lost -65% over the same period, further mitigating its losses.
Why this choice of Reddit?
Users of these cryptocurrencies find themselves at a loss, with Reddit justifying this choice by an evolution in its strategy. The company’s teams explain:
“The regulatory environment has only added to scalability limitations. While the moderators and communities that have supported Community Points have been incredible partners, as the product evolves it is no longer destined to scale. “
Translation: Reddit no longer sees any value in its cryptocurrencies, and plans to replace them with other services. Perhaps paid services, if some members are to be believed. The press release also explains that new “products”, which will fulfil the same role as these rewards, will soon be offered to the community.
“Time and effort previously allocated to Community Points can now be directed towards more “scalable” programs, such as the Contributor Program. “
It should also be recalled that the Kraken exchange platform had recently listed MOON and BRICKS last August, leading to an increase in their price. The company has not reacted to the news, but we can imagine that it is not particularly thrilled with the decision, which seems sudden. In the meantime, users can still sell their cryptocurrencies there… At a derisory price.