The price of altcoin project Moons (MOON), closely associated with popular social media platform Reddit, has dropped by a staggering 90%. This significant decrease has angered investors of not only MOON, but also other subreddit altcoins such as Bricks (BRICK) and Donuts (DONUT), whose prices have also collapsed. The sharp and deep decline in altcoin prices has left many investors and enthusiasts astonished, prompting them to investigate the reasons behind this downfall.
Reddit’s Announcement Hits MOON, BRICK, and DONUT
The MOON/USD chart, which represents the value of MOON against the US dollar, has experienced a sharp decline from around $0.65, its peak level during the year, to approximately $0.024, its bottom level. The price of Bricks, another subreddit altcoin, has decreased by 80%, while the price of Donuts has dropped by 70%. Such rapid and deep plunges in altcoin prices have raised questions about the underlying reasons behind this decline.
Taking a closer look at the reasons behind this sharp decline, a recent announcement made by Reddit stands out. The popular social media platform has decided to end the beta testing of Community Points, starting at the beginning of November. This means that users will no longer be able to earn more points in their Reddit Wallets.
Reddit’s Community Points system had increased demand and encouraged user engagement on the platform, as it was one of the fundamental features of these altcoins. The unique value proposition of MOON, BRICK, and DONUT was closely tied to this system in many aspects.
Reddit cited scalability limitations and changing regulatory environment as the main reasons behind the discontinuation of the Community Points system. The decision to redirect resources to other features like the Participant Program and subreddit karma, due to the inability to scale the product to meet the demand across the platform, has received backlash from the community.
Trading Volumes Surge
Meanwhile, the sharp decline in MOON’s price has significantly increased trading volume. MOON’s trading volume has surged over 2,400%, surpassing $2.5 million. The trading volumes of BRICK and DONUT have also skyrocketed in similar proportions.
This increase in trading volumes can be interpreted as a mass exodus or selling by disappointed investors trying to mitigate their losses. The large bearish candles accompanied by high trading volumes indicate a panic sell-off that has further accelerated the decline.
