Reddit Announces Plans to Phase Out Crypto Community Points Tokens
Reddit Set to Get Rid of MOON and BRICK Tokens
Reddit has revealed that it’s phasing out its Crypto Community Points Tokens, which were launched in 2020 to reward active users on the social media platform. According to the company’s announcement, the tokens will cease to exist on November 8.
Crypto Community Points Tokens were originally built on the Ethereum blockchain before Reddit moved them to Arbitrum Nova, an Ethereum scaling solution. Holders could redeem these tokens for various perks, including GIFs, emotes, and badges.
Over the past 24 hours, owners of the two Community Points Tokens, BRICK and MOON, have been dumping their holdings aggressively, causing the crypto assets’ prices to plunge significantly. According to data from CoinGecko, MOON is currently trading at $0.034 after dropping by 86%. BRICK, on the other hand, has declined by 61% to trade at $0.039 as of this writing.
Why Reddit is Abandoning Its Crypto Tokens
So, is there any reason Reddit is backing away from its key cryptocurrency integrations? Tim Rathschmidt, the social media platform’s Director of Consumer and product communications, has told TechCrunch that the resources needed to keep the Community Points Tokens alive are expensive and unjustifiable.
Moreover, Rathschmidt has said that the United States regulatory environment, which is still unclear, has played a role in pushing Reddit to phase out the BRICK and MOON tokens. When asked if Reddit’s Collectible Avatar NFTs will continue to exist, Rathschmidt responded with a yes.
Reddit Users React to Firm’s Latest Announcement
Meanwhile, Reddit users have shared varying opinions following the platform’s latest decision. Some are disappointed, while others applaud the move. A user named Superalbix has said the move to abandon MOON and BRICK tokens will force those who are on Reddit just for the rewards to leave, retaining genuine users.
Another user, SnD_PumpkinHD, has argued that users who have been shilling fake crypto projects will disappear soon following Reddit’s decision. However, he acknowledges that the social media platform users may not see educative content anymore since creators will no longer be incentivized from November 8.
While holders of BRICK and MOON won’t enjoy perks unlocked by these tokens in the coming days, users holding Collectible Avatar NFTs are assured that their assets still have value, at least for now.
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