• Following the decision by Reddit to wind down the crypto community points, the value of BRICK, MOON, and DONUT had dropped about 50%, 84%, and 28 percent respectively in the past 24 hours as the liquidity on different DeFi platforms drained.
• Reddit has undeniably struggled to keep up with the high competition in the social media industry amid the emergence of socialfi platforms and the fast growth of X, formerly Twitter.

After running the blockchain-based community points program for months, Reddit, a United States-based social news platform with more than 50 million users, has announced plans to wind down the project in favor of the rewards program.

Notably, Reddit highlighted that the resources needed to keep the blockchain-based community program running were not justifiable amid notable regulatory crackdown on crypto-related projects that are owned and governed by private companies.

Moreover, it was only a matter of time before the United States Securities and Exchanges Commission (SEC) charged Reddit for offering unregistered securities in a similar manner to Ripple and XRP.

“Though we saw some future opportunities for Community Points, the resourcing needed was unfortunately too high to justify,” Reddit’s director of consumer and product communications Tim Rathschmidt noted. “The regulatory environment has since added to that effort. Though the moderators and communities that supported Community Points have been incredible partners — as it’s evolved, the product is no longer set up to scale.”

Market Implication on the Community Tokens Following Reddit’s Decision to Wind Down the Program

Following the decision to wind down the community points program, their value significantly dropped in the past 24 hours leading to Wednesday.

According to our latest market data, Donut (DONUT) price had dropped about 27 percent in the past 24 hours to trade around $0.0094 during the early New York session on Wednesday. Nonetheless, DONUT holders in the past year had enjoyed a notable run of about 706 percent amid notable listings on different crypto exchanges.

Another Reddit community crypto token, the Moons (MOON) had dropped about 83 percent in the past 24 hours to trade at around $0.039. As a result, the MOON crypto token had a market capitalization of about $3.8 million and an average 24-hour traded volume of around $2.8 million.

The other Reddit community crypto token the Bricks (BRICK) had dropped about 49 percent in the past 24 hours to trade around $0.051 at the time of reporting. Notably, BRICK’s price had gained about 497 percent in the past year, showing the notable demand for the community tokens in the past few months.

Forward, Reddit intends to focus on rewarding community members without the use of complicated programs that end up being expensive to run.

We’re still working on ways to improve community governance and empower communities and contributions,” Rathschmidt added. “Part of why we’re moving past this product is that we’ve already launched, or are actively investing in, several products that accomplish what the Community Points program was trying to accomplish while being easier to adopt and understand.