MOON is a cryptocurrency closely linked to the social media platform Reddit. Yesterday, it experienced a sharp drop, with its value plummeting by 90%, sparking anger within the community. This situation has left investors and enthusiasts filled with uncertainty, as they question the decisions made by Reddit in recent times.
With a clear and pronounced decline, the token has been on a downward trajectory for some time. It has fallen from its all-time high of approximately $0.65 to the current minimum of around $0.05. The swiftness of the plummet only serves to invite contemplation about the reasons behind this outcome and what were the catalysts for this breakdown.
Reddit’s Bad Decisions Unleashed Chaos
The company recently made some unfortunate announcements that appear to be at the center of the storm and may have been the cause of MOON’s decline. Reddit announced that it had decided to discontinue the beta version of Community Points starting in November. Consequently, users will no longer be able to earn more points in their Vault.
This is particularly noteworthy because the Community Points system was one of the primary utilities of MOON and a driving force, as it promoted and encouraged user engagement within the platform. The intrinsic value of MOON, in one way or another, was grounded in that ecosystem.
On Reddit’s part, they tried to provide explanations in the midst of all this chaos. The discontinuation of the points system was attributed to two main reasons. They cited limitations in scalability and constraints due to the evolving regulatory environment.
The inability to scale the product to meet the demands of platform users and, on the other hand, the decision to reallocate resources to other features such as the Contributor Program and subreddit karma. These factors seemed to have sparked the fury of the users.
Focusing on the charts, it’s evident that trading volume significantly increased during the period of decline. This can be interpreted as an impending exit or selling-off by disillusioned investors trying to resolve or minimize their losses. The long bearish candles combined with high trading volumes paint a picture of panic selling, further intensifying and accelerating the decline.