The change made by the popular discussion platform Reddit in the terms of service in the summer caused an increase in Reddit community tokens.
But now these tokens have crashed. According to Coindesk, Reddit announced that it will close its nearly three-year-old blockchain-based Community Points program on November 8.
This program was established to encourage content producers and developers.
After this statement from Reddit, community tokens Moons (MOON), Bricks (BRICK) and Donuts (DONUT) experienced a major decline.
Tim Rathschmidt, Reddit's director of consumer and product communications, said in a statement to TechCrunch:
“Although we saw some future opportunities for Community Points, the funding required was unfortunately too high to be justified. We had no choice but to close.
“One of the reasons we are closing this program is because we have already launched or are actively investing in a variety of products that achieve what the Community Points program is trying to achieve, while also being easier to adopt and understand.”
Moons (MOOBN), the native token of Reddit's r/CryptoCurrency community, dropped by approximately 85% after this news, while Bricks (BRICK), the reward token of the r/Fortnite subreddit, dropped by 67%; Donuts (DONUT), the token representing the community scores of the r/ethtrader subreddit, dropped by 66%.
*This is not investment advice.