The End of Reddit’s Crypto-Based 'Community Points'
TL;DR
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Dangerous information: Reddit is winding down its Group Factors program, as of November eighth.
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Excellent news: It is a entire separate factor to Reddit’s collectible NFT avatar program, which is able to proceed to be supported.
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This is the place Reddit might’ve performed higher: It seems that the one factor you are able to do with Group Factors tokens now, is promote them – which has led to a number of group tokens crashing in value.
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With that in thoughts…Reddit took a danger when (as a mainstream Web2 platform) it embraced blockchain expertise – a danger that solely elevated as the corporate continued to construct all through the bear market.
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Dangerous information: Reddit is winding down its Group Factors program, as of November eighth.
(Group Factors are crypto tokens you possibly can earn and use to redeem particular perks, like memberships, distinctive badges, or animated emojis).
Excellent news: It is a entire separate factor to Reddit’s collectible NFT avatar program, which is able to proceed to be supported.
So why did Group Factors go ‘kaput’?
There have been 2.5 principal causes…
1. The whole prices have been too excessive to justify
2. The regulatory setting within the US is not precisely ‘crypto token pleasant’ rn
2.5. We do not know this for positive, however a littly birdy informed us that Reddit is planning to go public quickly. It is smart to do something to assist with their public picture (and in a bear market, crypto would not actually assist that).
So Reddit determined to pivot and put its vitality into tasks that do what the Group Factors program aimed for, however in a extra user-friendly / much less crypto-centric means.
And we get it; generally, simplicity is the secret.
That stated, this is the place Reddit might’ve performed higher:
It seems that the one factor you are able to do with Group Factors tokens now, is promote them – which has led to a number of group tokens crashing in value.
Reddit has a non-crypto user-rating system known as ‘Karma.’
(Principally, in case you reply steadily/get upvoted persistently/usually contribute positively to the platform, you may get Karma factors in return).
It might’ve been good to see Reddit enable Group Factors holders swap their Factors for Karma.
With all that in thoughts…
Reddit nonetheless took a danger when (as a mainstream Web2 platform) it embraced blockchain expertise – a danger that solely elevated as the corporate continued to construct all through the bear market.
So, we nonetheless love them for that.
