Reddit’s blockchain-based “Community Points” rewards crash after sunsetting::Tokens based on subreddit reputation saw dips over 85% after the announcement.
I can’t believe they ever had value.
It’s indisputable they failed to think this through, but did Reddit make any money off the attempt alone?
Is this entire switch to blockchain and then abruptly stopping it a net loss, or a minor, short-term net gain?
Serious question, because while I have a general understanding of what blockchain is, the whole who benefits/who loses and how that happens thing has become far too complex for me to really follow, so I’m hoping someone here can tell me.
Also, they didn’t shut it ALL down, apparently there are still some rubes to be fleeced via blockchain:
Notably, Reddit’s NFT marketplace was not targeted for closure.
So. Net loss? Net gain? Neutral? What’s your best guess, and why?
Likely only Reddit can say. I don’t think Reddit was ever trying to make money off Community Points directly (in contrast to their NFTs), but rather to boost engagement. Whether or not it did, and by enough to offset the costs of starting and maintaining the system, we’ll likely never know.
You’re probably right on all counts, but thank you for your response. Anymore when people start talking about the never ending shell game of crypto my eyes just glaze over, lol. “We’ll likely never know” seems to be the final line of every crypto story these days, when it comes right down to it.
