Reddit’s blockchain-based “Community Points” tokens crash after sunsetting

https://arstechnica.com/gadgets/2023/10/reddits-blockchain-based-community-points-rewards-crash-after-sunsetting/

Reddit is discontinuing its blockchain-based Community Points system, affecting tokens like MOON, BRICK, and DONUT used in specific subreddits for tipping and premium features.
The announcement led to a drastic decline in the value of these tokens, with MOON losing more than 85% of its value shortly after the news.
Reddit cited scalability issues and regulatory concerns as reasons for the discontinuation, shifting focus to its newer Contributor Program that rewards users with actual money.
After November 8, Community Points will be removed from users' Vaults, and any remaining points will be "burned" by year-end; however, Reddit's NFT marketplace will remain operational.

145 points · 13 comments · view on lemmy.world

13 Comments

567PrimeMover@kbin.social · 29 pts · 2y (2 replies)

Wait, is this the brand new system they just launched after trashing reddit gold and awards?

No, spez fell in love with crypto like five years or so ago and they trialed a reddit crypto thing in like 3 subreddits. It never worked as well as they hoped it would and it's first more than they wanted, so they're dumping it and pushing everyone over to the new Community Points thing. Which has a whole bunch of restrictions designed to prevent the vast majority of people from ever being able to withdraw their fake money.

Fuck spez.

Taako_Tuesday@lemmy.ca · 9 pts · 2y

Yes, they literally announced it like 3 months ago

tromars@feddit.de · 25 pts · 2y (1 reply)

As of November 8, coins like the "MOON" that r/CryptoCurrency used for tips, premium features, and even voting shares will be removed from users' Vaults. Noticing this, the value of most Reddit-based coins took a nearly straight drop on Tuesday after Reddit's announcements. MOON was trading just over $0.20 at 1 pm Eastern, shortly before the announcement in its subreddit. Shortly before 3 pm, MOON had dropped just below $0.02, a loss of more than 85 percent, with fellow Reddit currencies BRICK (r/FortNiteBR) and DONUT (r/EthTrader) seeing similarly precipitous plunges.

That is the most dystopian paragraph I’ve ever read, I think.

krellor@kbin.social · 14 pts · 2y

You load 16 tons, what do you get?
Another day older and deeper in debt
St. Peter, don't you call me 'cause I can't go
I owe my soul to the company store

gullible@kbin.social · 16 pts · 2y (3 replies)

https://www.coingecko.com/en/coins/moon

A week ago, the price jumped up 20%. Methinks someone learned that the end was near and decided to cash in/out.

Selmafudd@lemmy.world · 15 pts · 2y (1 reply)

If somebody cashed out a substantial amount the price would have gone down right?

gullible@kbin.social · 3 pts · 2y

It depends on quite a few factors, but generally yes.

stolid_agnostic@lemmy.ml · 6 pts · 2y

There is nothing on Reddit that is not manipulated.

Rentlar@lemmy.ca · 12 pts · 2y

Lol this is why I wouldn't trust a marketplace with Redditcorp (and spez) in control.

chicken@lemmy.dbzer0.com · 9 pts · 2y

What a bunch of scammers

DrQuint@lemm.ee · 5 pts · 2y

What's 85% of zero?

Nobody@lemmy.world · 3 pts · 2y

Reddit figures out cryptoscams are a thing 2 years too late and screws up the rollout. They should think about pushing back the IPO indefinitely. It's going to be a bloodbath.