Reddit’s MOON token triples after announcement of plans to develop the project

On November 14, the Reddit-linked r/CryptoCurrency Moons (MOON) token jumped 229% after presentations by the team of plans for further development of the project.

At the time of writing, MOON’s 24-hour price growth had cooled to 175.3%, according to CoinGecko.

It is expected that the platform will abandon the contract — it will become decentralised.

No new tokens will be issued, and the remaining MOON in Reddit’s treasury will be burned. As a result, the supply will shrink from 125 million to 83 million. Listings on exchanges will remain unchanged.

Moderators have promised to roll out a number of tools in coming months to boost the asset’s value. In particular, developers will focus on building bots and using the API.

“We have received solid feedback, and we are very excited to start building the future of Moons together as a community,” wrote one of the project’s representatives.

In May 2020, Reddit launched the Community Points program in beta testing to reward users for posting content. It used assets of the ERC-20 standard on the Ethereum blockchain.

For scaling the initiative, the platform used second-layer solution Arbitrum. Participants of subreddits received different tokens. For example, in the r/Cryptocurrency thread these were MOONS, and in r/FortniteBR — BRICKS.

On October 17, 2023, Reddit announced the winding down of Community Points. The team cited unreasonably high resource costs for the initiative and suggested that more scalable solutions to reward loyalty may exist.

Two days later, Reddit adminsimplicated in insider trading of the Community Points tokens.