Reddit Pulls Plug on Community Points, Triggering Moon Price Crash of 90% – Report

According to analytics provider Santiment, Reddit users are voicing frustration over the platform’s move to discontinue its Community Points program. The initiative rewarded users with crypto tokens like MOON and BRICK for engagement.

Source: Santiment – Start using it today

In response to the phase out announced this week, MOON crashed nearly 90% within hours. Reddit aims to wind down Community Points by early November to reallocate resources toward more scalable rewards systems. Following the move, the discussions has pushed Moon, Brick and Donut to trending list.

Launched in 2020, Community Points distributed Ethereum-based tokens to redditors who positively contributed in specific subreddits. This incentivized quality content and discussion.

However, in a statement, Reddit cited challenges in scaling the blockchain points model and cited regulatory concerns. Despite seeing potential opportunities, the resource demands were too high to justify.

The decision represents a pullback from one of social media’s most visible crypto rewards experiments. While moderators supported Community Points, backlash shows many users found value in earning decentralized tokens for participation.

By rewarding engagement with actual monetized assets rather than just reputation, Community Points pioneered a new incentive structure. Their removal deals a blow to hopes of onboarding redditors to crypto ownership.

While the move aligns with Reddit’s refocusing, disgruntled users argue it dilutes the platform’s decentralization and harms power users driving community growth. The severe MOON price drop epitomizes the disappointed sentiment around sunsetting points.

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Petar Jovanović
Petar Jovanović

As the Head of Content at Captainaltcoin, I bring years of experience in the crypto industry. With a strong belief in the potential of the web3 market since 2017, I'm passionate about sharing valuable insights and knowledge. Feel free to connect with me on LinkedIn and let's discuss the exciting world of cryptocurrencies and decentralized technologies!